Bankers Pessimistic About Credit Card Market

by Mercator Advisory Group 0

New data from FICO’s quarterly survey of US-based bank risk officers suggests that recent improvements in credit card delinquencies noted by various sources may be temporary in nature. The survey or 235 risk officers indicates that:

Nearly 85% of the bankers who manage

credit cards

expect delinquencies on

credit

cards to increase or remain the same, while about 15% see the delinquencies dropping.

In addition, bankers predict that the reduced lending trends will continue through the year. Forty-six percent of respondents expect approval criteria for credit to tighten, while only 14% of those surveyed expect the criteria to be loosened.

In line with other sources, the survey indicated the number of credit card accounts declined 17.7% in the year ending April 2010 compared to the previous 12 months. Total card-based credit available declined 12.2% during the same time period. Somewhat surprisingly, it was noted that inquiries for new credit were off just 3% from the previous year, suggesting that consumer demand for credit was relatively stable, in spite of issuers’ continuing caution in underwriting.

Read article here: http://www.thestreet.com/story/10855583/1/bankers-pessimistic-about-credit-card-market.html?cm_ven=GOOGLEN