Consumer credit outstanding rose at a seasonally adjusted annual rate of 6.5% in June, boosted by an 8.4% increase in borrowing on revolving accounts, consisting primarily of credit cards.
Total consumer credit outstanding in June was almost $2.46 trillion, rising $13.1 billion, or 0.53%, from May and increasing $115.6 billion, or 4.9%, from $2.34 trillion in June 2006, according to the Federal Reserve Board’s monthly Consumer Credit survey, released Tuesday.
Revolving credit during June, which includes credit card borrowing, equaled $903.9 billion, up by about $6.3 billion, or 0.70%, from $897.6 billion in May. June’s revolving debt was 7.8% above the $838.4 billion outstanding in June 2006.
Non-revolving credit – comprising closed-end loans for items such as mobile homes, tuition and vacations – exceeded $1.55 trillion in June, growing 0.44% or $6.8 billion from May and 3.3% from slightly over $1.50 trillion a year ago. The seasonally adjusted annual rate of change was 5.3% during June.
For the second quarter ended June 30, consumer credit outstanding showed 5.6% growth, with revolving credit and nonrevolving credit rising 7.4% and 4.5%, respectively. Credit card plans during the second quarter featured an average 13.46% interest rate, up 30 basis points from an average rate of 13.16% in the second quarter of 2006, the Fed reported.
New-car loans at auto finance companies were sold with an average interest rate of 4.66% in June, falling 22 basis points from May’s 4.88% and dropping 64 basis points from 5.30% in June 2006. The average amount that consumers borrowed to purchase their new vehicles in June was $26,929, down $234 or 0.86% from May but rising 3.1% from the June 2006 average of $26,126.