Consumers are borrowing a little less and more are in good standing according to a consumer credit report from the National Credit Regulator for the second quarter of the year. But consumers still borrowed more than last year, while most credit applications were rejected. The National Credit Regulator Consumer Credit Market Report released on Wednesday shows that the total value of new credit granted decreased from R159.16 billion to R157.37 billion, a decrease of 1.
The number of credit applications increased from 13.10 million to 13.12 million in June 2022, an increase of 0.12%. This shows that more people applied for credit, but the rejection rate was 66.70%, a clear indication that people who need credit often do not qualify for it.The banks’ share of total credit granted was R130.16 billion , retailers R6.46 billion , non-bank financiers R9.99 billion and other credit providers R10.76 billion .
The total outstanding consumer credit was R2.19 trillion, representing an increase of 1.13% compared to the first quarter. Mortgages accounted for R1.14 trillion , secured credit agreements for R479.87 billion , credit facilities for R286.65 billion , unsecured credit for R216.31 billion , developmental credit for R57.45 billion and short-term credit for R1.86 billion .
Credit facilities that mainly consist of credit cards, store cards and bank overdrafts, decreased from R24.71 billion in the first quarter to R24.27 billion . Short-term credit showed an increase of 9.87% from R1.99 billion in the first quarter to R2.19 billion.Here’s what happens to your debts when you pass awayAccording to the NCR Credit Bureau Monitor, credit bureaus held records for 26.52 million credit-active consumers, an increase of 0.15% compared to the 26.
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