The credit card industry is in a state of upheaval right now due to several factors. First is the general economic downturn which affected gravely the credit industry, sending several major credit companies to the brink of bankruptcy.
The rise in delinquencies and write offs were primarily one of the major causes of the credit industry crisis and the situation is still continuing today, albeit there have been some improvements and the industry is getting back some of its confidence. Finally,...
As the economic health of the country continues to falter and unemployment continue to rise, American consumers are having to adapt and change their financial habits. Credit card use among American consumers have noticeably slowed down and many are putting uncharacteristic effort to paying off their debts. Credit card companies are also sending lesser credit card solicitations and are much more lenient in their credit card applications.
Figures from 2005 show that banks sent around six...
TransUnion, an agency focusing on credit reports, released a report last Monday that indicated that credit card delinquencies are on the rise based on numbers from the first quarter.
According to the report, the delinquency rate for credit cards was at 11% higher than the previous year. Compared to the previous quarter, it was up by 9.1%. The delinquency rate is the rate of credit card borrowers who are delinquent in their payments by 90 days or more.
The first quarter is significant, as...
Government legislators are up in arms over what to do with the economic downturn that is recently plaguing the United States. Their latest bid to stem the tide is the much hyped credit card bill scheduled for release Tuesday.
The government is still reeling from the financial crash that happened late last year. The effect of the crash still continues up to this day. RealtyTrac Inc. recently reported that the foreclosure problem has worsened. This April, a jump of 32% of American homeowners...
The economic downturn has gotten the entire country in an uproar. Prices of basic goods are soaring, employment is going down, and interest rates are jumping from as low as 1.7% to as high as 25%. One thing that the economic collapse has proven is how important good credit rating is.
Banks have upped their interest rates to astronomical heights since the economic crisis began. They have also drastically lowered the credit limits for most credit holders. In most cases, those who have bad...