5 Trends To Watch In The Credit Card Space

Credit cards are increasing in consumer popularity.

 
 

Credit Card Usage
For all U.S. credit unions | Data as of Sept. 30, 2014
© Callahan & Associates | www.creditunions.com

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Source: Callahan & Associates’ Peer-to-Peer Analytics

The percentage of credit used versus credit available at U.S. credit unions has increased five percentage points in the past 10 years. Credit union credit card holders were using 32.5% of their available credit as of September 2014, leaving more than $92.5 billion in available credit on the table.

 

3 States With The Highest Credit Card Loan Growth
For all U.S. credit unions | Data as of Sept. 30, 2014
© Callahan & Associates | www.creditunions.com

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North Carolina's 6.7% unemployment rate as of September 2014 is 1 percentage point lower than the same time last year and 2.5 percentage points below where it was two years ago.

Nonfarm payrolls in North Carolina grew 2.6% annually through September 2014. The total national nonfarm payrolls grew at a slower pace, increasing just 2.0% from the previous September. North Carolina's faster growth in nonfarm payroll employment may suggest that its economy is improving faster than the the U.S. average.

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Nearly 40% of all Viriginia-based credit unions with a credit card portfolio reported a credit card penetration rate of at leats 20% as of September 2014.

Source: Callahan & Associates’ Peer-to-Peer Analytics

 

Average Credit Card Balance
For all U.S. credit unions | Data as of Sept. 30, 2014
© Callahan & Associates | www.creditunions.com

02-02-15-avgccbalance

Source: Callahan & Associates’ Peer-to-Peer Analytics

Confident consumers are carrying higher credit card balances than they did during the recession, as such, average credit card balances have increased 4.8% from September 2009. Similarly, the number of credit card loans at credit unions has risen 25.4% over the past five years to reach 16.3 million as of September 2014.

 

U.S. Noncash Payment Transactions By Number
For all noncash payment transactions | Data as of Dec. 30, 2012
© Callahan & Associates | www.creditunions.com

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Source: Callahan & Associates’ Peer-to-Peer Analytics

Two-thirds of consumer and business payments in the U.S. were made with cards by 2012, compared with just one-third of noncash paymments by card in 2000, according to the 2013 Federal Reserve Payments Study. Among various card types, credit cards increased at the third fastest rate from 2009 to 2012 (7.7% CAGR), after prepaid cards (15.3% CAGR) and debit card (7.8% CAGR).

 
 

Feb. 2, 2015


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