Credit companies issue more new credit cards
Americans have been saving money, and credit companies are taking note.
Instead of borrowing, consumers are taking a proactive stance toward their debt problems, leading banks to issue more new credit cards.
An estimated 2.9 million new credit cards were issued in July alone, a 12.8 percent increase from a year ago, when new sign-ups fell 54 percent, according to Reuters.
“Lenders are starting to lend more, but I don’t see consumers increasing their debt load,” Michael Koukounos, vice president of Equifax, told Reuters. “If they’re spending it’s not coming from debt.”
Banks are also lending to sub-prime borrowers, consumers with credit scores below 600. New cards issued to this demographic increased 34 percent over figures from a year ago. The average credit score for Americans also rose 0.4 percent during this time, making consumers better credit candidates for banks, the news source reports.
Despite the allure, Americans are still saving money. Personal saving is up 0.1 percent from last year, rising slightly from 5.7 to 5.8 percent in July.