Appetite for credit returning - Veda Advantage

Tuesday 1st February 2011

A renewed appetite for credit ahead of Christmas has been interpreted as a sign of an improving economy.

Inquiries in mortgages and credit cards increased in December, although consumer credit inquiries eased, according to credit bureau Veda Advantage.

Credit card applications rose 5.7% in December 2010 compared with December 2009, with the greatest interest from baby boomers - those born post-World War 2, between 1946 and 1964, the first of who are now reaching the retirement age.

Mortgage applications rose nearly 1%. Consumer credit applications were down 1.9% on a year earlier, although they were still above a low hit in 2009.

"The credit crunch shocked people and they changed their behaviours quickly, but now we are seeing a renewed but cautious approach to credit," said Veda Advantage managing director John Roberts.

"People were clearly more active in late 2010, and I expect to see this optimism continue in 2011."

NZPA

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