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Wednesday, December 17, 2014

ABA Report: Credit Card Use Rebounds in Second Quarter

Second-quarter credit card spending rebounded after a decline in the first three months of the year, according to the latest edition of ABA’s Credit Card Market Monitor released today. Subprime card spending jumped 14.3%, while prime account spending rose 10.3% and super-prime account purchases increased 8.2%. The share of borrowers who pay off their balances each month rose by 0.6 points to 29% of all accounts.

“Strong economic growth in the second quarter offset declines in the first quarter,” said ABA SVP Molly Wilkinson. “The significant economic growth we’ve seen in recent months makes it likely that credit card market trends will continue for the remainder of 2014 and beyond.”

New account volume rose 10% year-on-year, driven mostly by growth in subprime and prime accounts. The average credit line for new accounts rose slightly for subprime and prime accounts but increased 1.2% for super-prime accounts, reflecting lenders’ higher “confidence in consumers’ ability to manageable their household debt,” Wilkinson explained.

Read the Monitor.

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