Consumer demand for credit cards is in freefall and demand for buy now pay later accounts has plateaued, according to the latest Equifax data.
Credit card applications were down by 28.9 per cent in the March 2021 quarter, compared with the March quarter last year. It is the 12th straight quarter of declines in credit card applications that Equifax has recorded.
“Changing consumer behaviour is pushing credit cards out of favour,” said Equifax general manager advisory and solution, Kevin James.
Personal loan applications were down 14.5 per cent in the March quarter, compared with the March quarter last year.
Buy now pay later applications were up 4 per cent. Equifax data show BNPL applications rising sharply until April last year and then levelling off to a more modest growth rate.
Auto loan applications rose 3.7 per cent during the quarter and mortgage applications rose 23.5 per cent.