ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Newsbytes

Credit Card Use Rises in Q4; More Customers Paid Off Balances in Full 

May 6, 2020
Reading Time: 2 mins read

As credit card use picked up in the fourth quarter of 2019, a record share of consumers paid off their bill in full each month, according to ABA’s latest Credit Card Market Monitor released today. Monthly purchase volumes were up across all risk tiers compared to the previous quarter, particularly for super-prime accounts, which saw a 4% increase, and prime accounts, which rose 2.9%. Year-on-year, purchase volumes were up 5.8% for prime accounts, 5.7% for super-prime accounts and 2% for subprime accounts.

The share of account holders who paid off their balance in full each month rose to an all-time high of 31.9%, while the share of account holders carrying a monthly balance ticked up 0.2 percentage point to 44.1%. Outstanding credit as a share of disposable income fell 19 basis points in the fourth quarter to 5.5%.

The total number of new accounts (opened in the previous 24 months) fell in the fourth quarter, driven by a 1.6% drop in super-prime accounts and a 1.1% drop in prime accounts. New subprime accounts edged up 0.6% year-on-year. Meanwhile, the total number of credit card accounts also pulled back for the second consecutive quarter. Average credit lines grew across risk tiers for both new and total accounts in the fourth quarter, led by growth in prime credit lines.

ABA Senior Economist Rob Strand noted that the data show that consumers were generally well-positioned from a financial perspective prior to the outbreak of COVID-19 in the U.S. “Over the last several years, banks have been slowly bringing individuals who lost access to the credit card market in the aftermath of the last recession back into the fold with lower credit lines that could rise over time with good payment behavior,” Strand said. “While the COVID-19 pandemic has changed the underlying economic conditions and increased uncertainty, greater access to short-term financing provided by credit cards an help some consumers who face temporary income disruptions.”

ADVERTISEMENT
Tags: ABA newsCredit cards
ShareTweetPin

Related Posts

NAR: Pending home sales slipped in May

Existing home sales fall in April

Economy
May 22, 2025

Existing home sales slid 0.5% in April to a seasonally adjusted annual rate of 4 million, the National Association of Realtors reported. Sales dropped 2% from a year ago.

ABA unveils key policy priorities for 2025

Budget bill passed by House includes multiple banking industry priorities

Ag Banking
May 22, 2025

The House narrowly passed a reconciliation budget package with several tax provisions supported by ABA. The legislation next heads to the Senate.

ABA-advocated SAFE Banking Act introduced in House, Senate

House committee advances multiple banking-related bills

Newsbytes
May 22, 2025

The House Financial Services Committee advanced nine bills supported by ABA, covering issues ranging from bank merger applications to regulatory tailoring.

Banker op-ed: Durbin-Marshall credit card bill will hurt small businesses

ABA, state bankers associations: Keep credit card rate cap out of stablecoin bill

Newsbytes
May 22, 2025

A proposed amendment to add a credit card rate cap to an unrelated bill on stablecoin regulation would devastate credit access for millions of consumers and small businesses, the ABA and 52 state bankers associations said.

Culture eats code for breakfast: Rethinking AI strategy for banks

Survey: Majority of financial institutions deploying generative AI

Newsbytes
May 22, 2025

While banks have long employed artificial intelligence tools, a new survey shows that a majority of banks globally have either deployed or are in the process of deploying generative AI tools.

#PracticeSafeChecks campaign wins two Telly Awards

#PracticeSafeChecks campaign wins two Telly Awards

Compliance and Risk
May 21, 2025

An ABA public education campaign warning consumers about the risks of check fraud has received two awards for video and television excellence.

NEWSBYTES

Budget bill passed by House includes multiple banking industry priorities

May 22, 2025

House committee advances multiple banking-related bills

May 22, 2025

ABA, state bankers associations: Keep credit card rate cap out of stablecoin bill

May 22, 2025

SPONSORED CONTENT

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025
Six Payments Trends Driving the Future of Transactions

Six Payments Trends Driving the Future of Transactions

March 15, 2025
AI for Banks: A Starter Guide for Community and Regional Institutions

AI for Banks: A Starter Guide for Community and Regional Institutions

March 1, 2025

PODCASTS

Podcast: Accelerating banking for quick-service restaurants

May 8, 2025

How a Georgia community bank supports government-guaranteed lending nationwide

May 1, 2025

Podcast: Quantum computing’s shakeup in payments, cybersecurity

April 24, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.