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 » Delinquencies Rise; Card Issuers Show Willingness to Lend to Consumers with Low Credit Scores

Delinquencies Rise; Card Issuers Show Willingness to Lend to Consumers with Low Credit Scores

By
Add to Favorites:
Delinquencies Rise; Card Issuers Show Willingness to Lend to Consumers with Low Credit Scores

Late payments made to credit cards account and defaults seem to have stopped declining after roughly a year and a half of steadfast improvements. 

“The improvements are tapering off,” said Mike Dean, who is a managing director at Fitch Ratings, according to The Washington Post.

There were mixed results reported by the six biggest credit card issuers for October regarding consumer payment behavior. Half revealed increased default rates while the other half laid claim to fewer defaults. September`s results were much the same, which ended the ongoing trend of delinquencies dropping in number since the start of 2010. A delinquency is defined by the industry as a payment that is late by 30 days or longer.

This shift appears to be an indication of many consumers slowly returning to the seasonal payment habits they demonstrated prior to the recession, wherein consumers would be sluggish about making payments on time in the fall, then making up for any lapsed payments right after the start of the new year.

However, delinquency and default rates nationwide remain historically low. This could be because credit card companies terminated the accounts of borrowers who struggled to make payments throughout the housing crisis and as unemployment numbers climbed. According to Moody`s, banks wrote of an estimated $70 billion in credit card debt that was unpaid beginning in the end of 2008 through the end of 2010. Those consumers who defaulted on their credit cards during that timespan have found it difficult to reopen new lines of credit, which has helped to keep the country`s overall low delinquency and default rates low.

Now lenders are reaching out once again to consumers with low to moderate credit scores and extending them the opportunity to carry credit cards once again. According to the credit reporting bureau TransUnion, in June through September of this year banks issued nearly 250,000 more credit cards to consumers with spotty credit histories. This is being done by card companies in an effort to expand their business.

Should the delinquency and default rates mirror what has occurred in the past, experts expect both to dip once again come springtime.

Add to Favorites:

Related News:

Fifth Third Bancorp Upgrades App

By Dar Dowling, Posted: January 20, 2017

Fifth Third Bancorp has upped the ante when it comes to their mobile app, in terms of how many ways users can pay for merchandise – now letting them make payments with all of the available payment platforms. Continue reading
New Credit Card by Amazon and Chase

By Dar Dowling, Posted: January 19, 2017

Amazon.com, Inc. and Chase have joined together to roll out the new Amazon Prime Rewards Visa Signature Card offering 5% back on all Amazon.com purchases. Continue reading
Wix and Square Team Up to Make Payments Easier

By Dar Dowling, Posted: January 18, 2017

Wix, a cloud-based web development platform letting people set up a wide range of websites, is teaming up with Square to provide merchants and entrepreneurs a new method of taking payments for products and services bought online and in ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
You could turn $200 into $400 with Cashback Match™. We’ll automatically match all the cash back you earn at the end of your first year. New cardmembers only.
For Excellent, Good Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit