Newly opened bankcard accounts reflect overall trend of reduced use
April 15, 2010
Despite decreased credit availability and challenging economic circumstances, balances on new bankcards are declining from recent highs set in 2007. Overall, new bankcard balances now stand at $994, down from $1,315 a year ago and a high of $1,491 in Q1 2008.
Interestingly, although limits have decreased, overall utilization rates also have decreased. The current rate for new accounts is 23 percent, compared with 30.6 percent in Q3 2007 — showing that consumers are not utilizing new bankcards at the same rates seen from 2007 through 2009.
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Source: Experian–Oliver Wyman Market Intelligence Reports