ARLINGTON, Va. -- Credit unions' share of the $1.5 trillion non-revolving market has hovered between 13.7% and 13.8% and is not going anywhere anytime soon.
Seasonally adjusted, consumer installment credit fell $1.2 billion, or 0.6%, on an annualized basis to $2.37 trillion. In September, it dropped to $233.9 billion from $234 billion the month before. However, revolving credit climbed $400 million to $26 billion, but was offset by declining non-revolving credit of half-a-billion dollars to $207.9 billion.
According to NAFCU, non-revolving and revolving credit figures "were a bit of a surprise" because retail sales excluding cars fell 0.5% in September yet revolving credit increased. At the same time, car sales got a boost, but non-revolving credit fell.
All this means that credit unions are staying where they are in these areas in the near-term. "Year-end incentives from vehicle manufacturers are expected to further constrain non-revolving loan growth," NAFCU said. "Helping to offset that, however, is that members are less likely to use home equity to purchase light vehicles. Declining home equity extraction should also further the increase in revolving credit over the next few months."