CU Card Accounts Holding As Americans Keep On Retrenching
Credit union issued credit cards largely held their balances and even grew a little as Americans continued their retreat from other issuer's cards, according to Federal Reserve data.
The Federal Reserve Bank of New York reported that open credit accounts overall declined by a net 59 million as consumers or card issuers closed 217 million accounts while they opened 158 million.
But the bank's quarterly report on household debt and credit also reported that credit account inquiries within six months-an indicator of consumer credit demand-rose for the second quarter in a row.
Overall, the report found that total consumer indebtedness was $11.6 trillion, a reduction of $922 billion (7.4%) from its peak level at the close of the third quarter of 2008, and $110 billion (0.9%) below its level on June 30.
But the Federal Reserve's preliminary overall credit report showed that credit union credit cards as of the end of September still carried balances of $35.3 billion, an increase of $1.1 billion over the $34.2 billion they carried at the end of the third quarter of 2009.