Credit Cards Still Stacking Up for Growth

Credit unions gained a slightly larger share of the nation’s credit card debt in July as banks held steady and finance companies lost share, the Federal Reserve Bank reported Monday.

The Fed’s G-19 Consumer Credit Report showed credit unions held $64.5 billion in credit card debt on July 31, up 8.4% from a year earlier. Credit unions’ share of credit card debt was 6.2% in July, compared with 6.2% in June and 6% in July 2018

While overall credit union loan growth is slowing, credit cards have held up better than most other sectors. Credit cards now account for 5.9% of all credit union loans, up slightly from a year ago. 

However, both banks and credit unions showed slightly slower growth from June 30 to July 31 than they did over the same month a year earlier. Credit union’s 12-month growth rate of 8.4% was better than the overall credit union portfolio, but was still lower than the 10% growth from July 2017 to July 2018, which approached a post-recession record.

Lenders of all types held $1.04 trillion in credit card debt, up 4.7% from a year earlier. 

Banks held $933.2 billion in credit card debt, up 4.8% from a year earlier. Banks’ share was 89.6% in July, the same as June and July 2018. Finance companies held $23.8 billion in credit card debt, down -0.5% from a year earlier. 

NCUA data shows the 10 largest holders of credit card debt held about 40% of the credit union total. These 10 credit unions held $25.6 billion in credit card debt in June, up 12.3% from a year earlier:

• Navy Federal, Vienna, Va. ($106 billion in assets, 8.6 million members) held $18 billion, up 15.2%.
• PenFed Credit Union, Tysons, Va. ($24.4 billion in assets, 1.8 million members) held $1.7 billion, up 0.8%.
• BECU, Seattle, ($21.2 billion in assets, 1.2 million members) held $1.2 billion, up 9.3%.
• State Employees’ Credit Union, Raleigh, N.C. ($40.6 billion in assets, 2.4 million members) held $772.3 million, up 3.1%.
• SchoolsFirst Federal Credit Union, Santa Ana, Calif. ($16 billion in assets, 897,015 members) held $754.1 million, up 2.9%.
• Pennsylvania State Employees’ Credit Union, Harrisburg, Pa. ($5.6 billion in assets, 459,045 members) held $746.7 million, up 3%.
• Suncoast Credit Union, Tampa, Fla. ($10.3 billion in assets, 844,897 members) held $728.6 million, up 12.9%.
• Digital Federal Credit Union, Marlborough, Mass. ($9 billion in assets, 834,258 members) held $614.7 million, up 9.4%.
• America First Federal Credit Union, Riverdale, Utah ($11.2 billion in assets, 1 million members) held $563.4 million, up 10%.
• Randolph-Brooks Federal Credit Union, San Antonio, Texas ($9.7 billion in assets, 843,982 members) held $521.4 million, up 15.7%.