January’s consumer credit data show that credit unions are continuing to expand their share of the nonrevolving credit market and, more specifically, capturing vehicle loan market share from banks and finance companies, NAFCU’s Curt Long said.
Long, NAFCU’s staff economist, said credit unions’ expanding share of the nonrevolving market comes “in spite of the fact that credit unions have a small stake in the student loan boom,” which indicates vehicle loan growth is taking place.
Consumer credit, a measurement that does not include real estate loans, increased 0.9 percent in January at credit unions from the previous month. “That compares with a 1.1 percent decrease for banks and a 0.5 percent decrease for financial companies,” Long said.
Overall consumer credit expanded 7 percent in January on a seasonally adjusted, annualized basis, marking the sixth consecutive monthly increase. Non-revolving credit, which is primarily made up of motor vehicle and education loans, increased at a 10 percent annual rate. Revolving credit, which is primarily credit cards, increased 0.1 percent.continue reading »