Total consumer credit card borrowing dipped slightly in September while lenders’ credit card underwriting criteria remained in a holding pattern, according to new data the Federal Reserve Board released Nov. 7.
Consumer revolving credit, 98% of which is tied to consumer credit cards, fell 0.01% to $789.6 billion from $790.2 billion in August, the Fed said in its monthly G.19 report. Consumer credit generally has been declining over the last two years, with the exception of an uptick in borrowing during June (
Lenders saw a slight increase in demand during the third quarter, but most banks have held the line on increasing credit lines, according to a quarterly survey of senior loan officers the Fed released Nov. 7.
The Fed surveyed loan officers at 51 U.S. banks and 22 U.S. branches of foreign-owned banks between Oct. 4 and Oct. 18, and questions included supply and demand for consumer credit during the previous three months.
Nearly three-quarters, or 74.3% of loan officers said demand for consumer credit cards held steady during the previous three months, while 17.1% said demand was moderately stronger than earlier in the year, and 8.6% said demand was moderately weaker.
Some 88.9% of loan officers said consumer credit card limits remained unchanged during the previous three months, while 8.3% said they had eased credit card limits somewhat and 2.8% said they tightened credit limits.
Standards for approving consumer credit card applications were unchanged during the previous three months, according to 92.1% of loan officers, while 7.9% said they had eased application-approval standards somewhat.
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