Bankers Remain Pessimistic About Credit Card Market

What's Hot

23 Upgrades Under $50 to Make Your House Look AwesomeAround The House

Trump Worth $10 Billion Less Than If He’d Simply Invested in Index FundsBusiness

Do This or Your iPhone Bill May SkyrocketSave

19 Moves That Will Help You Retire Early and in StyleFamily

11 Places in the World Where You Can Afford to Retire in StyleMore

What You Need to Know for 2017 Obamacare EnrollmentFamily

The 35 Two-Year Colleges That Produce the Highest EarnersCollege

5 DIY Ways to Make Your Car Smell GreatCars

8 Things Rich People Buy That Make Them Look DumbAround The House

50 Ways to Make a Fast $50 (or Lots More)Grow

32 of the Highest-Paid American SpeakersMake

Amazon Prime No Longer Pledges Free 2-Day Shipping on All ItemsMore

5 Reasons a Roth IRA Should Be Part of Your Retirement PlanGrow

More Caffeine Means Less Dementia for WomenFamily

7 Household Hacks That Save You CashAround The House

30 Awesome Things to Do in RetirementCollege

Beware These 10 Retail Sales Tricks That Get You to Spend MoreMore

Fewer consumers are turning to credit cards these days, and more are paying back their balances.

The following post comes from partner site

According to a FICO survey of bank risk officers released today, the difficulties in the credit card market may continue in the short term.

Nearly 85% of the bankers who manage credit cards expect delinquencies on credit cards to increase or remain the same, while approximately 15% see the delinquencies dropping.

In addition, bankers predict that the reduced lending trends will continue through 2010. 46% of respondents expect approval criteria for credit to tighten while only 14% of those surveyed expect the criteria to be loosened.

Demand remains strong for new credit cards, but cards are harder to get.

According to the survey, the number of new credit cards accounts dropped by 17.7% during the 12 months ending in April 2010 from the previous 12 months.

But the number of inquiries for new credit fell by just 3%. This seems to indicate that consumers could not get all the credit they wanted. During that time, the total amount of credit available on all U.S. consumer credit cards fell by 12.2%.

These numbers show that the industry is still weak and many cardholders are still in financial trouble, but FICO says the figures are an improvement over last quarter. The percentage of all respondents expecting an increase in credit card delinquencies fell from 59% to 42%.

“Banks slashed credit card approvals to minimize their losses, especially to applicants with average or low credit scores. High unemployment and bankruptcies do not create an environment that encourages these loans,” says Bill Hardekopf, CEO of and author of The Credit Card Guidebook.

The FICO Survey of Consumer Credit Trends is a quarterly survey of bank risk professionals. It was conducted in July 2010 with 235 risk professionals in the United States participating.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!


Read Next: 19 Cheap or Free Ways to Cut Your Winter Energy Bills

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,713 more deals!