Credit card applications fall despite Christmas

10/02/2012

Credit card and mortgage applications fell in the last quarter of 2011.

“To see such a marked reduction in the use of credit by consumers in the period leading up to the Christmas holidays is unusual; the final quarter of the year is typically a time when there is stronger demand from consumers to obtain new credit,” commented Angus Luffman, head of consumer risk at Veda.

Veda said its Consumer Credit Demand Index revealed a sharp decline in credit card applications across Australia in the last quarter of 2011, which was down 3.5 per cent year-on-year. This was led by Queensland, which reported a 9.6 per cent fall in applications.

Source: The Adviser