Store-branded or retail credit cards are gaining more popularity among customers than bankcards, according to a new data by Equifax Personal Solutions (EPS).
The report titled ‘National Consumer Credit Trends Report’ found that the US retail card debt grew 7.05% while bankcards grew by only 0.37% in the third quarter of 2013, compared to 2012 figures.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The popularity of retail credit cards is increasing as customers are being offered an option to save money on their purchases, which can be planned well after considering all their spending options.
Six of the top 25 metropolitan cities reported increase in retail credit card balances and flat or declining bankcard balances in the quarter.
Both bankcard and retail card balances increased in the areas such as Dallas-Fort Worth, Houston-Galveston-Brazoria, Miami-Fort Lauderdale, Portland-Salem, San Diego, and Washington-Baltimore.
EPS president Trey Loughran said they see the increase in retail credit card debt as an indication of rising consumer confidence.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData"At the same time, carrying over balances can lead to debt trouble fast, and consumers should be cautious about not overspending," Loughran added.
