Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Credit Card Spending Propels Discover to Record Quarter

Credit Card Spending Propels Discover to Record Quarter

By
Add to Favorites:
Credit Card Spending Propels Discover to Record Quarter

Discover Financial Services can thank consumers who used their credit cards, which helped them almost double their earnings from the same period last year. Losses from uncollectible card loans fell to 4.82% in May, down from 8.82% a year earlier. In addition to getting their consumers to return to using their Discover credit cards, Discover also expanded its business into other lending and credit areas, which contributed to record quarter growth.

Student Loans

Credit card companies and various financial institutions started looking for ways to make up for lost revenues during the credit crisis. Discover is one of the companies that started pursuing lending in noncredit card areas. This decision led the company to buy the student lending division of Citigroup in 2010.

It cost Discover $600 million to acquire Citigroup Inc.’s Student Loan Corp. The purchase made Discover the third largest student loan lender in the U.S. the purchase also sent the Discover loan portfolio up to $52.5 billion, which is a 5% increase.

In May of 2011, Discover got its hands into the mortgage lending business, buying the origination division ofwww.tree.com.

Outgrows its Competition

Discover is outgrowing some of the giants, such as JPMorgan Chase and Bank of America. While Discover saw a decrease of 1% in credit card loans at the beginning of 2011, the overall balance of loans increased by 5%. Discover is reporting its stock is $1.09 per share and a$600 million profit, as of May 31. At the same time last year, Discover reported its share price at 33 cents per share and a profit of $258 million.

According toChief Executive Officer David Nelms, Discover is benefiting from fewer loan defaults and expanding into other loan business because it is boosting dividends and buying back stock. The losses the company has taken on loans and credit accounts is also down. From May to June, uncollectible credit card loan debts fell from 8.82% to 4.82%.

Add to Favorites:

Related News:

Best Buy Gets Chase Pay

By Dar Dowling, Posted: September 30, 2016

Best Buy carries everything from smartphones and TVs to computers and cameras – and now people who shop with them will be able to use Chase Pay when shopping online. Continue reading
Financial Optimism is Up, But So is Income Stress

By Dar Dowling, Posted: September 29, 2016

Are you feeling more hopeful, yet are still a bit worried about whether or not you're making enough money? Continue reading
MasterCard Send Makes a Splash

By Dar Dowling, Posted: September 28, 2016

MasterCard and Stripe have teamed up so that U.S. sellers using Stripe marketplaces, like Postmates, Instacart and iCracked, can opt to make instant payouts via the Stripe interface, using MasterCard Send. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
1% cash back on select purchases, terms apply
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit