New data shows that originations continue to grow in several categories — especially to subprime credit card customers.
For bank credit cards, lending to subprime customers increased 41% from 2010 to 2011. Subprime borrowing hit a four-year high in December with 1.1 million new bank credit cards issued, according to a National Consumer Credit Trends Report produced by Equifax [EFX] and CreditForecast.com. CreditForecast.com is a joint venture of Equifax and Moody's Analytics.
Subprime borrowers made up more than 46% of the market in auto financing last year, and they totaled 31% of 2011 retail credit card originations, Equifax said Thursday.
Credit in general expanded as lenders more aggressively sought new customers.
New credit in 2011 totaled $782 billion, which was below pre-recession levels but more than 10% higher than 2009 and 2010.
Consumers opened 39.9 million bank cards in 2011 — 18% more than the previous year and the highest total since 2008.
Total consumer debt in the U.S. was $11 trillion as of last month, an 11% drop from its peak in the fourth quarter of 2008. The decline was driven by an almost 12% dip in home financing balances.