WASHINGTON (1/9/15)--In line with national trends, consumer credit at credit unions decelerated in November, posting a gain of $3.1 billion after a $5.2 billion increase the prior month, according to numbers released by the Federal Reserve Thursday.
Credit unions watched revolving credit climb to $44.9 billion from $44.5 billion for the month, while nonrevolving credit rose $2.6 billion to $256.4 billion.
Revolving credit reflects credit card usage, while nonrevolving credit is tied to big-ticket purchases such as homes and automobiles.
"Consumer credit balance growth continues to be driven by the nonrevolving segment," said Andrew Davis, Moody's analyst (Economy.com Jan. 8). "Consumers are feeling more confident in the recovery thanks to steady gains in the job market and house prices that are trending in the right direction.
"In turn, consumers are taking advantage of extremely low interest rates and easier access to credit to finance big-ticket items such as vehicles and education."
New-auto loans and unsecured-personal loans led overall loan portfolio increases at the nation's credit unions in November, according to monthly estimates from the Credit Union National Association.
Adjustable-rate mortgages, home-equity loans and used-auto loans also posted healthy gains as well (News Now Jan. 6).
Nationally, overall consumer credit balances climbed $14.1 billion in November after a $16 billion increase in October, the Fed report said.
Total consumer credit balances climbed 7% on an annual basis in November, up from 6.8% in October.