Member Balances Have Risen 10% Over Past Year

PORTLAND, Ore. - Credit union members are borrowing more on their CU-issued credit cards. According to analysis by AssetExchange of the 2,050 CU card portfolios of $1 million or more, card balances among members grew significantly over the past year, with the average balance per member up 10% since March 2006 to nearly $2,200 by March of 2007.

The percentage of portfolios that grew faster than the rate of inflation also rose dramatically over the past year, to 70% in March of this year from 51% one year earlier, "the highest rate in recent memory," the company said.

Total card assets for portfolios increased as a percentage of total assets to 4.35% in March of 07 from 4.06% in March of 06.

"A preliminary assessment of the data indicates that approximately 17 credit unions with credit card portfolios larger than $1 million sold their portfolios during the first quarter of 2007, with a combined dollar volume of roughly $110 million," AssetExchange said. "These numbers are similar to sales activity in the first quarter of 2006."