In what may serve as a sign of the economic times, more people used their credit cards when making purchases in the month of May, according to a recent report from the Federal Reserve.
According to the agency, consumer borrowing increased to $5.1 billion, the eighth consecutive month in which the use of credit has increased over the previous one. Specific areas in which borrowing increased included auto and student loans, according to the Federal Reserve.
As the Associated Press states, increased borrowing activity may be viewed as an indication consumers have more confidence in the state of the economy. However, it may also be seen as a sign that consumers have less money on hand and must resort to credit in order to make various payments.
With the unemployment rate rising in June, economists may be more likely to believe increased borrowing is a sign some people have fallen on hard times.
A bad credit report may prevent someone from being able to obtain the credit they need to make a payment, but some issues may be due to inaccurate calculations by the credit company. A credit lawyer can help identify these problems, which should raise a consumer's three-digit score in the process.