Bankers Remain Pessimistic About Credit Card Market

What's Hot


2 Types of Black Marks Might Vanish From Your Credit File SoonBorrow

This Free Software Brings Old Laptops Back to LifeMore

6 Ways the Obamacare Overhaul Might Impact Your WalletInsurance

21 Restaurants Offering Free Food Right NowSaving Money

7 Dumb and Costly Moves Homebuyers MakeBorrow

House Hunters: Beware of These 6 Mortgage MistakesBorrow

Beware These 12 Common Money MistakesCredit & Debt

Obamacare Replacement Plan Gets ‘F’ Rating from Consumer ReportsFamily

Where to Sell Your Stuff for Top DollarAround The House

30 Household Uses for Baby OilSave

25 Ways to Spend Less on FoodMore

Nearly Half of Heart-Related Deaths Linked to These 10 Foods and IngredientsFamily

The True Cost of Bad CreditCredit & Debt

17 Ways to Have More Fun for Less MoneySave

14 Ways to Maximize Your Social Security ChecksGrow

10 Ways to Save When You’re Making Minimum WageSave

Boost Your Credit Score Fast With These 7 MovesCredit & Debt

7 Painless Ways to Pay Off Your Mortgage Years EarlierBorrow

The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

10 Companies With the Best 401(k) PlansGrow

8 Ways to Take Control of Your Finances — and Be HappierGrow

This Scam Now Tops ID Theft as the No. 2 Consumer ComplaintFamily

5 Surprising Benefits of Exercising Outdoors in WinterFamily

14 Super Smart Ways to Save on TravelSave

New Study Ranks the Best States in the U.S.Family

Thousands of Millionaires Moving to 1 Country — and Leaving AnotherGrow

The Rich Prefer Modest Cars — Should You Join Them?Cars

Strapped for College Costs? How to Get the Most From FAFSABorrow

6 Overlooked Ways to Save at Chick-fil-AFamily

Secret Cell Plans: Savings Verizon, AT&T, T-Mobile and Sprint Don’t Want You to Know AboutFamily

6 Healthful Treats for Your DogFamily

Ask Stacy: What’s the Fastest Way to Pay Off My Mortgage?Borrow

7 Free Sources of Manufacturer Coupons You Can Find OnlineSave

Ask Stacy: How Do I Start Over?Credit & Debt

8 Ways to Get a Good Price on a Shiny New AutoCars

You’ll Soon Pay More to Shop at CostcoSave

10 Ways to Save When Your Teen Starts DrivingFamily

Fixing Your Credit? Do These 5 Things, Avoid These 3Credit & Debt

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

The following post comes from partner site LowCards.com.

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 LowCards.com 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: 5 Easy Ways to Save on Your Cell Phone Bill

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 1,991 more deals!