Americans are cutting back on their credit card usage for the first time in three months but are making up for it with an increase in auto credit usage, according to the latest report from the Federal Reserve, FoxBusiness.com reported. n April, consumer credit increased at a seasonally adjusted annual rate of 5.3%, or by $18.6 billion, the report showed. Revolving credit such as credit cards decreased at an annual rate of 2.4%, while nonrevolving credit like auto loans, personal loans or student loans increased at an annual rate of 7.6%. Mortgage loans are not included in the Fed’s report. The report showed that as of the first quarter of 2021, there is $1.24 trillion in outstanding auto credit, compared to $1.22 trillion in the fourth quarter and $1.18 trillion in the first quarter of 2020. The biggest factor contributing to the current auto market conditions is the limited supply of used cars. According to data from vAuto, there are approximately 2.34 million used cars available in America today. That's more than 530,000 less than a year ago, and about 430,000 less than during the same period in a more normal 2019.
