Credit unions have increased their share in the credit card market this year to their highest level since the Fed began including them in its household debt statistics in 1984.
The Fed’s latest monthly G-19 Consumer Credit Report showed credit unions’ share of credit card debt was 6.8% in May, rising from 6.4% in May 2024 and reaching the record territory in January. The previous record was 6.7% reached in February 2021.
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The G-19 released Tuesday showed credit unions held $85.1 billion in credit card debt on May 31, up 3.9% from a year earlier. The gain from April was 0.6%, compared with the April-to-May average gain of 1.3% from 2014 through 2024.
Credit union balances have been growing at annual rates of about 4% to 5% since July 2024. Banks tracked the 12-month growth rates of credit unions until last December, when bank growth stopped. Since January, bank balances have been declining at an accelerating rate.
Banks held $1.15 trillion in credit card debt on May 31, down 2.9% from a year earlier. The gain from April was 0.8%, compared with the 10-year average gain of 1.3%. Banks’ share of credit card debt was 91.8% in May, compared with 91.8% in April and 92.1% in May 2024.
Meanwhile, credit unions also performed better than banks in May in non-revolving consumer loans, which include auto loans, boat loans and personal loans.
Credit unions held $635.2 billion in non-revolving debt on May 31, up 10.8% from a year earlier. The gain from April was 0.4%, compared with the 10-year average of up 0.9%.
Banks held $826 billion in non-revolving consumer debt on May 31, down 7.4% from a year earlier. The change from April was 0.2%, compared with the 10-year average of up 0.4%.
Contact Jim DuPlessis at [email protected].
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Jim DuPlessis
Jim covers economic data trends emerging for credit unions, as well as branch news and dividends.
