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Credit Card Use on the Rise

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    What does increase mean for economy?

  • Duration 1:54
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Credit card use I don't know that this is this means we're a little more confident but I'm not sure it's good -- long term you nude side.

Credit card use is on the rise and heading back to pre recession levels that's according to the analysis from the the payment process instead of first data.

-- found significant increases in each of the first three quarters of this year beating out credit card use.

Credit cards generally offer more perks rewards points airline miles and cash rebates.

But they can come with a hefty interest -- to Peter Barnes is with us from the Fox Business Network.

He's live in Washington I'm curious how significant is the increase in credit card usage here.

But pretty significant -- a trend that's been building since the spring according to first data and it could be a sign that consumers are back.

First data reports of purchases of credit cards rose eight point 2% the first quarter but that by the third quarter that figure had risen to ten point 6%.

And -- the momentum continued in -- Black Friday with an eleven point 2% pop.

These are the first double digit increases in credit card purchases since before the recession.

First data says it's due in part to banks canceling their rewards programs on their debit cards for their higher income income customers.

And in part to middle and lower income consume -- consumers.

Having to pay more for food and fuel those consumers did not have the cash to pay those higher costs so they put them on their credit cards -- a big effect on sales all of this -- Well and it could mean that the entire holiday shopping season could be black and not just Black Friday bigger profits for retailers -- fewer shopping days in the red is the point Silvio Tavares -- first data told me earlier today.

That credit card that this credit card data suggests that season.

Could be stronger than expected which could give the economy a nice boost -- wouldn't hurt a bit Peter Barnes on Capitol Hill.

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