The U.S. credit card market bounced back in the second quarter as the economy improved, according to the American Bankers Association’s December 2014 Credit Card Market Monitor report. The number of new accounts increased and monthly purchase volumes picked up, while the distribution of accounts resumed its shift away from “revolvers” who carry balances month-to-month.
It’s been seven years since the start of the Great Recession, and the impact of this event has been dramatic, long-lasting and widespread. The economy has only recently shown evidence of returning to pre-downturn levels of performance.
A recent credit report study from TransUnion found that the composition of loans that people typically carry has materially changed for both the youngest and oldest segments of the population during the last decade. Not only did economic forces prompt change, but general demographic shifts have changed the composition of outstanding credit among different age groups in the U.S.
The U.S. added an unexpectedly large 321,000 jobs in November, the largest single-month gain in nearly three years according to the Labor Department’s Friday release. The unemployment rate remained at 5.8 percent due to slightly more people entering the workforce.
The mortgage delinquency rate (the rate of borrowers 60 days or more delinquent on their mortgages) continued its robust decline, falling for the 11th straight quarter to 3.36% at the end of Q3 2014, according to TransUnion’s latest mortgage report.
The U.S. economy added 214,000 jobs in October 2014, according to data released early Friday by the Labor Department. With upward revisions to previous August and September, it marks the ninth straight month that has seen job growth over 200,000.
Following an economic surge in the second quarter of 2014, the U.S. economy expanded at an annualized rate of 3.5 percent in Q3, according to the Commerce Department. The number exceeded economists’ expectations of around 3 percent growth.
Last week I attended Consumer-Action’s 43rd Annual Awards Event, along with Rob Meck, CEO of Premiere Credit and Tim Heber, Compliance Officer of FIS Global. We represented the Consumer Relations Consortium (CRC), which was a sponsor of the event along with Google, CapitalOne, Credit.com, TracFone, Amazon, AT&T, Microsoft, and Time Warner Cable.
A new TransUnion study found that the consumer loan wallet – the composition of loans that people typically carry – has materially changed for both the youngest and oldest segments of the population during the last decade.
Delinquencies declined nearly across the board in the second quarter, falling in nine out of 11 categories as the economy improved and consumers responsibly managed their finances, according to results from the American Bankers Association’s Consumer Credit Delinquency Bulletin.