CUNA
  • Advocacy
    • Priorities we’re fighting for
    • Actions you can take
  • News
  • Learn
  • Compliance
  • Shop
  • CUNA News
    • Policy & Issues
    • CU System
  • Credit Union Magazine
    • Technology
    • Lending
    • Compliance
    • Marketing
    • Management
    • Operations
    • Human Resources
    • Volunteers
  • Advertise
  • Contact
  • Subscribe
  • Buyers' Guide
  • Awards
    • CU Rock Star
    • CU Hero
Learn More about Member Value

News

Member Benefits
Learn more
Learn more about the benefits of membership.
Home » Nonrevolving CU loans climb $2.1 billion in Oct.

Nonrevolving CU loans climb $2.1 billion in Oct.

December 8, 2015

WASHINGTON (12/8/15)--Consumer credit rose at credit unions nationwide by $2.1 billion in October, according to numbers released by the Federal Reserve Monday.

Nonrevolving credit drove the gains with a $2.1 billion jump to $287.9 billion, while revolving credit remained largely flat at $47.6 billion.

Nonrevolving credit reflects the growth of loans for large purchases such as automobiles and education, while revolving credit reflects credit card use.

For all major holders nationwide, consumer credit advanced $16 billion in October, which was below analyst expectations of a $20 billion increase. Similar to credit unions, revolving credit inched up by 0.25% and nonrevolving credit climbed 7.4%.

“Consumer credit unsurprisingly cooled from its rapid September growth,” said Thomas McCartin, Moody’s analyst (Economy.com Dec. 7). “Revolving credit was little changed, posting its weakest monthly growth since February. That said, the larger context is more upbeat. Year-over-year growth in revolving credit exceeded 4% for the third straight month … Implications from holiday spending are unclear at this point.”

Revolving credit for all major holders rose $200 million during the month, while nonrevolving balances increased $15.8 billion.

“The nonrevolving segment will drive consumer credit growth,” McCartin said. “Consumers will stop buying vehicles at the current unsustainable pace at some point. The expected rate hike at the December Federal Open Market Committee meeting is unlikely to weigh on vehicle sales because it is expected to be small.”

  • Related Articles

    CU consumer credit climbs by $3B in Aug.

    Mortgage credit availability climbs in Oct.: MBA

    Nonrevolving credit drives consumer credit growth

This Month Payments: Perils and Promise

Payments: Perils and Promise

The payments arena offers new opportunities to connect with members.
Cards Are (Still) King

Cards Are (Still) King

Credit and debit cards still drive the competitive payments market.
Open Banking on its Way

Open Banking on its Way

Prepare for the impact it will have on member relationships and competitive positioning.
App Digital Edition Subscribe

Trending

  • Senate OKs CUNA-backed disapproval of CFPB lending bulletin

  • CUNA backs Senate use of CRA for CFPB lending bulletin

  • Compliance: New mortgage servicing rules now effective

Tweets from @CUmagazine and @CUNA_News

Polls

How often do you talk to the board about compensation?

View Results
More

Champion of America’s Credit Unions

Credit Union National Association is the only national association that advocates on behalf of all of America’s credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • About
  • Careers
  • Contact Us
  • Recommended Websites

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Vendors