Join us on LinkedIn Follow us on Twitter Like us on Facebook Follow us on Instagram
 
  OCTOBER RESEARCH STORE Already a subscriber? LOG IN
AddControlToContainer_DynamicNavigation6

ABA report notes uptick in credit card usage

Email A Friend Printer Friendly Version
0 comments
Inside the Beltway
Wednesday, August 2, 2017

The opening quarter of 2017 saw an uptick in credit card usage, continuing a long-running trend in the financial marketplace, according to the latest American Bankers Association (ABA) Credit Card Market Monitor report.

The report includes a series of graphs representing data on purchase volumes of various credit card account types, behaviors governing consumer spending habits and recent finance charge yields.

Although monthly purchase volumes declined 7–10 percent across risk tiers compared to the previous quarter, they increased 3.3 percent on a year-over-year basis for prime and super-prime accountholders, dipping slightly for subprime borrowers. The ABA, in a press release, characterized the decrease as “regular” for the quarter following the holiday season, with relatively low consumer spending.

The report also indicates that the number of accounts opened in the previous 24 months rose 8.8 percent in the first quarter compared to the same period in 2016. New subprime accounts grew the fastest among the three risk tiers, rising 11 percent year-over-year; however, they make up the smallest share of total accounts created. New prime and super prime accounts each grew by 8 percent compared to the same period of the previous year.

“A stronger labor market continues to serve as a bright spot in the U.S. economy, putting more Americans in a better position to establish and build credit,” ABA Card Policy Council Executive Director Jesse Sharp said in the release. “Issuers are responding to consumer demand by extending credit access to more people, but at lower credit lines that can increase over time with a good payment history.”

The effective finance charge yield, measuring interest payments relative to total outstanding credit in the market, increased 28 basis points to 11.76 percent, compared to the previous quarter, which is consistent with the Federal Reserve’s decision to raise the federal funds rate by 25 basis points at the end of 2016, the report notes.

“Market interest rates on loans tend to mirror what the Federal Reserve does, as the Fed’s goal is to tighten credit ever so slightly,” Sharp said.  “Nonetheless, the effective finance charge is likely to remain well below post-recession highs this year.” 

The percentage of consumers commonly characterized as “revolvers” (those who carry a monthly balance on their card) increased 0.3 percent in the first quarter to 44 percent.

The ABA noted that revolving accounts typically increase in the first quarter as a result of seasonal spending patterns. The organization also noted that the current share remains below the 2009 recession peak of 48.4 percent, and that the share of accountholders who pay their balance in full each month, sometimes classified as “transactors,” dropped 0.3 percent to 28.8 percent of all accounts. Meanwhile, 27.2 percent of accounts were dormant.

As a share of disposable income, credit outstanding declined 13 basis points to 5.3 percent in the first quarter, and has remained below 5.5 percent since 2012, representing responsible payment behavior by consumers, the ABA stated.

The July 2017 report reflects credit card data from January through March 2017, as well as annualized data showing ongoing trends. It is intended to provide key statistics on industry trends and relevant economic factors affecting the industry, using credit card data taken from a nationally-representative sample provided by Argus Information Services LLC, as well as data taken from numerous public and private sources, including the Department of Commerce’s bureau of economic analysis and the Federal Reserve, according to the release. 

The report includes an attached appendix with answers to frequently asked questions and definitions of the data presented.  

Today's other top stories
CFPB withdraws $95 million consent order against Navy Federal Credit Union
Fed releases 2025 stress test results, highlights proposed changes to test model
CFPB contract cancellations to face OIG scrutiny
Podcast: Adapting to the Future of Work
Regulatory Roundup: Agencies offer guidance to entities affected by Texas floods


COMMENT BOX DISCLAIMER:
October Research is not responsible for the comments posted on its websites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.
Comments:

Be the first to leave a comment.

Leave your comment
Please enter a comment.
CAPTCHA Validation
CAPTCHA
Code:
Please enter the word displayed in the image above. Please enter the word displayed in the image above.
: 
Please enter your name.
: 
Please enter your email address.
This field must contain a valid email address.
Your Email is for reporting purposes only. It will NOT be displayed.
Popularity:
This article has been viewed 3024 times.

Monthly Newsletter

Dodd Frank Update July 2025

Cover Story:

Former CFPB attorneys say state CFPA rights are for the courts to decide


News by Topic   News by Edition   News by Agency   News by Industry   In-depth Reports   Events
Banking
Case Law
Conference Coverage
Consumer Protection
Data Privacy
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
 
Dodd Frank Update June 2025
Dodd Frank Update July 2025
Archives
 
CFPB NCUA
CFTC OCC
FDIC OFR
FHFA SEC
FRB States
FSOC Treasury
FTC  
 
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
 
2025 State of the Industry
CRA and Affordable Housing
2025 State of the Industry
Who's My Regulator?
Fair Lending
Mortgage Technology
Marketing Compliance for Lenders
Archives
 
National Settlement Services Summit (NS3)
Women's Leadership Summit (WLS)
Webinars

Library   About   Subscribe   Other Publications
Data Privacy Vault Court Actions
Keys to Real Estate podcast Enforcement Documents
Blog - Tuesdays with Mary Guidance Documents
1071 Compliance Guide White Papers
eClosing Solutions Showcase Position Papers
Executive Interview Series Legislation
Lender Associations Regulations
The Dodd-Frank Act Reports, Studies and Surveys
Dodd-Frank Summary & History Federal Register Notices
 
Dodd Frank Update
Contact / Editors
Advertise
Request a Media Kit
Social Media
Are You An Expert?
Subscriber Agreement
 
Subscriptions
Free Email Updates
Try a Free Edition
 
The Title Report
The Legal Description
Valuation Review
RESPA News
Copyright © 2011-2025 Dodd Frank Update
An October Research, LLC publication
3046 Brecksville Road, Suite D, Richfield, OH 44286
(330) 659-6101, All Rights Reserved
www.doddfrankupdate.com | Privacy Policy
VISIT OUR OTHER WEBSITES
> The Legal Description
> RESPA News
> The Title Report
> Valuation Review
> NS3 The Summit
> Women's Leadership Summit
> October Research, LLC
> The October Store


Loading... Loading...
Featuring:
  • Delivery 3X a week plus breaking news as it happens
  • Comprehensive title insurance industry news
  • Recent acquisitions, mergers, real estate stats
  • Exclusive in-depth coverage of the industry's hottest stories
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Comprehensive Dodd-Frank coverage
  • The latest information from the CFPB
  • Full coverage of Congressional hearings
  • Updates on all agency actions
  • Analysis of controversial provisions
  • Release of newest studies and reports
Sign up today and...
  • Be one of the first to know where NS3 is being held
  • Learn about NS3 speakers and sessions
  • Save on registration with Super-Early Bird rates
  • Discover the networking opportunities NS3 offers
  • Find out if CE credits will be offered for your area
  • And much more
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Preview the latest RESPAnews.com Top Story
  • RESPA related headline news
  • Quote of the Week
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Legal, regulatory and legislative information impacting the settlement services industry
  • News from HUD, Congress, state legislatures and other regulatory agencies
  • Follow the lobbying efforts of all the major national real estate services organizations.
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • The industry's only full-time newsroom
  • Relevant, up-to-date appraisal industry news
  • Covering the hottest stories and industry trends
NEWS BY TOPIC
EDITION
AGENCY
IN-DEPTH REPORTS
INDUSTRY
EVENTS
LIBRARY
EMAIL UPDATES
ABOUT
SUBSCRIBE
Banking
Case Law
Conference Coverage
Consumer Protection
Data Privacy
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
Current Edition
June 2025
May 2025
April 2025
Archives
CFPB
CFTC
FDIC
FHFA
FRB
FSOC
NCUA
OCC
OFR
SEC
States
Treasury
2025 State of the Industry
Real Estate Compliance Outlook
CRA and Affordable Housing report
Who's My Regulator?
Fair Lending
Marketing Compliance for Lenders
Archives
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
National Settlement
Services Summit (NS3)
Women's Leadership
Summit (WLS)
Webinars
2025 Economic Outlook Series
CFPB's Shake-Up & Its Impact on You
Data Privacy Compliance
Fintech Partner Compliance
Strategies post-NAR settlement
Industry and Regulatory Outlook
Securing Your Cyber Network
Compliant Marketing Tactics
2024 Economic Forecast Series
Webinar Archives
Data Privacy Vault
Keys to Real Estate podcast
Blog - Tuesdays with Mary
1071 Compliance Guide
eClosing Solutions Showcase
Executive Interview Series
Lender Associations
The Dodd-Frank Act
Dodd-Frank Summary
Court Actions
Enforcement Documents
Guidance Documents
White Papers
Position Papers
Legislation
Regulations
Reports, Studies and Surveys
Federal Register Notices
Proposals
Final Rules
GAO
Agency
Contact Us
Advertise
Request a Media Kit
Social Media
Are You An Expert?
Subscriber Agreement