The number of credit card accounts increased steadily in the second quarter of 2015, reaching the highest rate since late 2008 at 318 million, according to the American Bankers Association’s latest Credit Card Market Monitor.

The December 2015 Monitor found that new accounts across all risk categories grew 16 percent year-over-year and that the number of subprime accounts has steadily increased since bottoming out in 2013. Among accounts opened within the last 24 months, subprime accounts increased 32 percent compared to the same period a year ago.
“Access to credit is expanding in a manner that benefits both consumers and the broader economy. While the volume of subprime accounts is growing, it remains well below pre-recession levels and makes up a much smaller share of overall new account volume,” Jess Sharp, executive director of ABA’s Card Policy Council, said in a statement.

The total number of subprime accounts has fallen by 30 percent since the beginning of 2009, while the share of subprime accounts relative to total accounts has fallen from 28 percent to 19 percent.
The ABA report also reports that card issuers are extending smaller lines of credit to help manage risk and avoid charging higher interest rates. The average credit line for new subprime accounts slipped 0.1 percent compared to last quarter. The current rate is 1.1 percent below last year’s levels, while credit lines for all accounts declined across all three risk categories.
“Card issuers are finding new ways to meet the needs of Millennials and other consumers with limited credit histories, as well as those who may have had difficulties managing their finances after the recession and are looking for a second chance,” Sharp said in a statement. “These consumers are increasingly opening new accounts with lower initial credit lines that can increase over time as they demonstrate good use of credit.”
Card credit outstanding remained unchanged at 5.3 percent as a share of disposable income was unchanged at 5.3 percent, while the effective finance charge yield (interest charged to accounts as a percent of outstanding credit balances) fell to a new post-recession low at 11.07 percent. Additionally, the number of account holders who carry a monthly balance decreased 1.3 percent to 41 percent, and the number of consumers who pay off their account in full increased 0.7 percent to a post-recession high of 29.6 percent. Dormant accounts grew by 0.6 percentage points to 29.4 percent of all accounts.
The full report is available here.