Credit card debt rose sharply from September to October for credit unions and other lenders, while car loans and other term loans advanced more slowly.

The Federal Reserve Bank's Consumer Credit report released Thursday showed revolving loans to consumers rose 0.77% from Sept. 30 to Oct. 31, the biggest September-to-October gain since card debt rose 1.17% in 2000.

Meanwhile, credit unions' continued strength in automotive lending has allowed the movement to continue to build a share of the total consumer credit market it hasn't seen the last quarter of the 20^th century.

Credit unions held $364.6 billion in non-revolving consumer loans in 2017-10, up 11.3% from a year earlier. Car loans account for more than 90% of non-revolving consumer loans at credit unions and about 40% nationally.

The increase in non-revolving loans from September to October was 0.78% among credit unions, down from 2% a year ago. Likewise, the increase fell to 0.05% among banks and finance companies in October, compared with a 0.1% gain a year earlier.

Still, non-revolving consumer loans in October were up 11.3% from a year ago at credit unions compared with only 0.8% at banks and finance companies.

As a result, credit unions continued to gain share of the nation's total consumer credit (revolving plus non-revolving loans).

Credit unions held $420.2 billion in consumer debt on Oct. 31, up 10.9% from a year earlier. Credit unions' share of total consumer credit was 11.1% in October, up from 11.07% in September and 10.55% in October 2016.

Credit unions last maintained at least 11% of the nation's portfolio of credit card loans, car loans and other forms of consumer debt. from February 1975, as North Vietnam prepared to launch its final offensive against South Vietnam, until October 1998, when a 77-year-old John Glenn returned to space aboard the space shuttle Space Shuttle Discovery.

Their share fell to a low of 8.09% in December 2011, and has gradually risen, crossing the 11% threshold in July.

Credit unions' share of the nation's credit card portfolio was 5.7% in October, essentially unchanged from September and up more than 10 basis points from a year ago. Banks and finance companies' share was 89.1% in October, also unchanged from September and down 40 basis points from a year ago.

Credit unions held $55.6 billion in credit card debt Oct. 31. The 0.59% gain from September compared with a nearly flat 0.1% month-to-month gain a year ago. It was their biggest monthly increase since a 1.34% gain in October 2011.

Banks and finance companies also saw a sharp increase for the month. They held $870.9 billion in credit card debt on Oct. 31, up 0.82% from September and more than double the 0.3% monthly gain a year ago.

For the 12 months, card debt rose 6.1% for all lenders, 8.7% for credit unions and 5.7% banks and finance companies.

Instant Insights /

Credit Union Share of Consumer Loans Up in October

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