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By: Today's Credit Unions

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June 9th, 2016

Credit Union Lending: NCUA Says Delinquencies Are Rising

Credit Union Growth | Credit Union News & Information

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A new report from the National Credit Union Administration (NCUA) finds that loan delinquencies and charge-off rates are rising at the nation’s CUs.

Much of this is due to a happy development: credit union lending has risen by a healthy amount recently.

 In fact, loans outstanding were up 10.7% in the year ending in the first quarter of 2016. Total loans reached $799.5 billion at the end of the first quarter, NCUA said.

New auto loan originations rose 15.4%, accounting for the biggest part of the overall increase. Used auto loans were up by 13.2%. 

CUs are lending more to member businesses. These loans grew by 13%.

Mortgage lending is also up, by 10.4%.

CUs are also more active in the controversial payday lending space, with these types of loans up by 8.1%. Payday lending typically brings with it relatively high delinquency rates.

What does all this mean for members?

Rising loan delinquency rates may prompt lenders – including CUs -- to become a bit more strict with their approval thresholds. It may become harder to get approved for a loan in the near future.

By all means, do everything you can to build your credit score and “keep your nose clean” when it comes to your credit-worthiness.

As you know, credit unions are looking after the money of all members. If you’re planning a big purchase in the future (house, car), do everything you can to get your credit score as high as you can.

You might also be interested in: Four Critical Elements to Your Credit Union Growth

12 Steps to Grow Your Credit Union

Credit Unon Lending - NCUA Report: Delinquencies Rise at U.S. Credit Unions

About Today's Credit Unions

Today’s Credit Union is a team of marketing and editorial specialists with deep credit union experience. TCU was created to address the challenge Credit Unions have in making social media marketing really work for them each day. They take no advertising, and have no agenda outside the CU movement. TCU’s only business is serving Credit Unions and their members.

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