The consumer credit recovery continued in the fourth quarter of 2020, building off trends established last fall, according to the American Bankers Association’s latest quarterly Credit Card Market Monitor. Monthly purchase volumes improved across risk groups for the second consecutive quarter as the share of Revolvers (those who carry over a monthly balance) hit a new record low.
The May 2021 Monitor, which reflects credit card data from October to December 2020, found that monthly purchase volumes continued to rise after bottoming out in the second quarter of 2020, increasing 7–9% quarter-over-quarter across risk tiers while approaching pre-pandemic spending levels. Meanwhile, credit card credit outstanding as a share of national disposable income* rose by 13 basis points to 4.67%, though it remains near an all-time low and 85 basis points below its level one year ago.
