Credit Card Use Rebounds, Up a Surprising 6% ($4.3B), Fed Reports

Credit Card Use Rebounds, Up a Surprising 6% ($4.3B), Fed ReportsAfter four straight months of declining credit card use, consumers rediscovered plastic as a payment option in October, as overall consumer credit surged 7.1 percent, the Federal Reserve said Friday.
That’s the biggest jump for overall credit — not including loans tied to real estate — in five months.
The $18.2 billion increase in credit followed a revised $16.3 billion gain in September that was more than initially reported, the Fed said Friday.
The figure for October beat all economists’ projections.
The “revolving” category — mostly credit cards — jumped $4.3 billion to $856.8 billion in October, up 6.1 percent from a year earlier.
That’s a big move for credit card lending, which had slowed, averaging 0.4 percent year-over-year growth over the five months preceding October.
No such concerns with “non-revolving” credit — mostly auto and student loans. That category increased by $13.9 billion to $2.22 trillion, up 7.5 percent from a year earlier.

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