Lenders are making credit more available to borrowers with less than perfect risk scores because of declining loan losses and the improving economy, according to Moody’s Analytics, in conjunction with Equifax, which released their Household Credit Report on CreditForecast.com.

Because of this — combined with a rise in payrolls and a slowing of student debt growth — households are increasing their credit card spending.

“The U.S. economy’s performance this year critically depends on the housing market,” the report notes. “Potential borrowers are still digesting the price and interest rate increases.

“The Federal Reserve’s timeline for normalizing monetary policy is becoming more certain, with asset purchases likely to end in the fall and the first rate hike waiting until 2015. This should push long-term rates lower before they start rising again and support the housing recovery,” the report states.