Credit Unions Gained Credit Card Share in April
But Fed report shows banks gained in consumer term loans as credit union auto lending stalled.
Credit unions built their credit card balances at a rate slightly better than banks from March to April, increasing their share slightly, according to a Fed report Wednesday.
Fed’s G-19 Consumer Credit Report showed credit unions held $75.3 billion in credit card debt on April 30, rising 1.5% from March to April, compared with an average drop of 0.7% for Aprils from 2016 to 2022. Balances rose 15.1% from a year earlier.
Credit unions’ share of credit card debt was 6.4% in April, rounding up from 6.3% in March and 6.3% in April 2022.
Banks held $1.08 trillion in credit card debt on April 30, up 1.3% from March, compared with an average 0.1% drop. Their balances rose 14.3% from a year earlier. Banks’ share of credit card debt was 91.1% in March, unchanged from March and up from 90.7% in April 2022.
The Fed report showed banks gained share for non-revolving consumer loans, which include autos and personal loans, as credit union auto lending weakened.
Banks held $939.8 billion in non-revolving consumer debt on April 30, up 0.5% from March, matching the average April gains over the previous seven years. Balances rose 3.2% from a year earlier. Banks’ share of non-revolving loans was 26.0% in April, up from 25.9% in March but down from 26.4% in April 2022.
Credit unions held $572.6 billion in non-revolving debt on April 30, up 0.6% from March, compared with an average 1.3% gain. The balance was up 16.7% from a year earlier. Credit unions’ share of non-revolving loans was 15.8% in March, unchanged from March and up from 14.2% in April 2022.
CUNA’s Monthly Credit Union Estimates accounts for most of the non-revolving loans as auto loans and unsecured consumer term loans.
Personal loans at credit unions were $67.6 billion on April 30. They rose 2.1% from March, compared with an average April gain of 0.4%. They grew 23.2% from a year earlier.
CUNA estimated total car loans were $502.3 billion on April 30, rising 0.3% from March, compared with an average April gain of 1%. They grew 15.1% from a year earlier.