Part of the growth is the result of an easing of the tighter standards that followed the 2008 credit bust after the boom of the early-2000s. Now that banks have repaired the damage from billions of dollars in bad debts, they're better able to take on more risk. A stronger job market is also putting more consumers in a borrowing mood, according to economists at Wells Fargo.  "Consumers are feeling increasingly confident about the economy and may be more comfortable making purchases with credit cards as a result," they said in a recent note on consumer credit.  With the Federal Reserve offering up a steady supply of cheap money to lend, credit card issuers are doing a booming business expanding their customer base.  JP Morgan Chase, the largest card issuer by purchase volume, told investors last month that credit card sales volume grew 12 percent to $120 billion in the latest quarter compared with a year ago. Credit card balances rose 2 percent to $127 billion.  As they hand out more accounts and higher limits to consumers with lower credit scores, though, lenders face a higher risk that they won't get paid back. Some card issuers are bracing for a fresh round of bad debts by setting aside more in reserve to cover the cost of charging off unpaid card balances.  In its latest earnings call with analysts and investors, Capital One Financial said it would boost its loss provision by 17 percent, saying it expects to expand that cushion as it continues to expand its lending.
Credit card companies are boosting lending to people with dinged credit, though some are bracing for more bad debts.