• Consumer credit applications continue to grow, led by an increase in credit card applications

Consumer credit applications continue to grow, led by an increase in credit card applications

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  • Overall consumer credit applications rose +10.1% (vs March qtr 2017)
    • Credit card applications rose +11.7% (vs March qtr 2017)
    • Personal loan applications rose, up by +8.7% (vs March qtr 2017)
  • Mortgage applications fell by -9.2% (vs March qtr 2017), now the fourth quarter of decline, with the rate of decline accelerating

Consumer Credit Demand Index by Equifax, March Quarter 2018

Consumer credit applications continue to see positive growth.

Consumer Credit Applications

Monthly consumer credit applications - March 2018Quarterly consumer credit applications - March 2018

Credit Demand Index
(vs March Quarter 2017)

Equifax Credit Demand Index March 2018

 

NOTE
Historically, movements in Equifax mortgage application demand data has led movements in house prices by around six to nine months. Mortgage applications are not part of the Consumer Credit Demand Index, but are a good indicator of home buyer demand, and an excellent indicator of housing turnover.

Note to Editors
The Quarterly Consumer Credit Demand Index by Equifax measures the volume of credit card and personal loan applications that go through the Consumer Credit Bureau by financial services credit providers in Australia. Credit applications represent an intention by consumers to acquire credit and in turn spend; therefore, the index is a lead indicator. This differs to other market measures published by the RBA which measure credit provided by financial institutions (i.e. balances outstanding).

Purpose of Equifax media releases
The information in this release is general in nature, is not intended to provide guidance or commentary as to the financial position of Equifax and does not constitute legal, accounting or other financial advice. To the extent permitted by law, Equifax provides no representations, undertakings or warranties concerning the accuracy, completeness or up-to-date nature of the information provided, and specifically excludes all liability or responsibility for any loss or damage arising out of reliance on information in this release
including any consequential or indirect loss, loss of profit, loss of revenue or loss of business opportunity.