Car loans drive up personal loan applications

Total credit applications fell in the last three months of 2011, but personal loan applications grew modestly, up 2.4 per cent for the December quarter.

“Interestingly, personal loan volumes started to exceed those of credit cards for the first time, for six out of the twelve months, culminating in a 3.8 per cent increase over the course of 2011,” credit reference agency Veda reported.

“The rise may partially be attributed to a seasonal spike in demand for car loans around the end of the year, however, there was growing demand from a younger demographic in addition to a clear rise in Western Australia.”

Source: The Adviser