ABA report: Credit card market healing continued in Q4 2021

In an indication of continuing U.S. customer strength, month-to-month charge card purchase volumes increased throughout threat tiers in in 2015’s 4th quarter, the 3rd successive boost, according to the American Bankers Association’s newest quarterly Credit Card Market Monitor launched today.

Monthly purchase volumes increased 4–6% throughout threat tiers compared to the previous quarter. Purchase volumes were 23–27% above year-earlier levels, and although high inflation was instrumental for the costs boost, inflation-adjusted month-to-month purchase volumes likewise increased throughout threat tiers on a quarterly and yearly basis. The efficient financing charge yield, which determines interest payments relative to amount to impressive credit in the market, fell another 9 basis indicate 12.01%, a four-year low.

“The strong labor market allowed consumers to continue driving the economy forward,” stated ABA Chief Economist Sayee Srinivasan. “While the U.S. economy is dealing with higher inflation and consequently rising interest rates, as evidenced by credit card debt as a share of disposable income, U.S. households’ balance sheets remain robust to help absorb shocks from these headwinds.”


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