Economy

Consumer Credit Rose Again in July

The American consumer base is taking on more debt. While nowhere near a concern, the Federal Reserve released its July 2015 Consumer Credit report showing that credit rose by 6.7% on an annualized basis. This was up $19.1 billion from the prior month, and it marks a rising trend that has lasted for nearly four years now.

Tuesday’s report is rarely a market-moving report. It was also pretty much in-line with estimates if you split the consensus estimates. Those estimates were $19.5 billion as the consensus from Dow Jones. Bloomberg was calling for a gain of $18 billion in July.

Credit card debt is the key component of revolving credit, and it rose by 5.7% annually. That is high on the surface, but lower than the roughly 10% gain measured in June.

Student debt and auto loans make up a large portion of the non-revolving credit. This measurement of dent rose 7% annually versus a gain of almost 9.5% in June.

With so much of consumer spending being tied to purchases on credit cards or tied to the ability to get a loan for large ticket items, much of this is likely to support the notion that the U.S. consumer remained healthy throughout the first two-thirds of the key summer months.

Again, the consumer credit report is not generally a mover of the financial markets.

Credit Card Companies Are Doing Something Nuts

Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.

It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.

We’ve assembled some of the best credit cards for users today.  Don’t miss these offers because they won’t be this good forever.

 

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.

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