The nation’s demand for credit grew by 4.1 per cent over the 2012 year, according to the latest data released by commercial data specialist Veda.  

While the study shows that credit growth has been positive, personal credit card applications fell by 2 per cent over the same period, while personal loan applications grew by 10 per cent.

Consumer credit is showing a solid pace of growth for the first time in over a year.  That reflects personal loans being taken out in greater numbers to finance a period of car-buying, with a sharp rise in motor vehicle purchases recorded over the past year,” said Angus Luffman, General Manager of Consumer Risk at Veda.

"The continuing weakness in credit cards and mortgage enquiries still indicates that the attitude of consumers towards borrowing is still broadly one of caution - while there are encouraging signs, it's still too early to call a sustained turnaround in the weak consumer credit environment of the past few years," Luffman added.

Veda also found that mortgage enquiries have remained flat over the same period, decreasing by 0.7 per cent to the December quarter.

Veda's data historically shows that mortgage enquiries are a good indicator of home buyer demand and an excellent indicator of housing turnover, with movements in mortgage enquiries tending to lead movements in house prices by around six to nine months. 

"Housing markets have, in the majority, been weak since late 2010, and there is little evidence in the latest Veda data that the RBA rate cuts are having much effect in reigniting housing turnover with the level of mortgage applications staying flat since halting a two year decline in the March 2012 quarter,” Mr Luffman said.