Posted on 08 July 2009
Tags: American Express Co., asset-backed securities, Bank card defaults, Bank of America Corp's lending portfolio, Banks, Capital One Financial Corp, charge-off rate, Chargeoffs, Citigroup Inc., Credit Card Chargeoffs, credit card companies, debts, delinquencies, Discover Financial Services, monthly payments, private-label cards, rise in Bank card defaults, rise in defaults, rise in delinquencies, Standard & Poor's, U.S. credit cards, U.S. credit quality index, Unemployment, US Credit Card Chargeoffs, Visa-branded credit card
In May Bank card defaults rise up to 10 % – S&P
In May there has been a fall of 5.7 % in delinquencies – S&P
S&P has seen that the defaults rise up to 10.5-12.5 %
On Tuesday it has been said by Standard & Poor’s that as unemployment grew to a 26-year high, there had been a record rise in the charge-off rate of U.S. credit cards issued by banks.
Rise In U.S. Credit Quality Index
There has been a rise of 10 percent in the U.S. credit quality index which was 6.4 % in April. The U.S. credit quality index has tracked $414.8 billion of bank card receivables backing S&P rated asset-backed securities. As compared to the last year the index has quickly raised up to 66.8 %.
Among private-label cards, there has been a rise in the defaults up to 12.2 % in May which was 11.7 % in April, while there has been a fall in delinquencies from 7.1 % to 6.9 %.
The decline in delinquencies has been attributed by the analysts to a seasonal trend, as tax refunds is being used by the consumers to pay back debts.
Credit Card losses Follow Unemployment
Credit card losses usually follow unemployment, which rose to 9.4% in May and expected to reach 10% by the end of 2009 or in early 2010.
Big Credit Card Companies Faced Credit Losses
Big credit loses have been shown by two companies the American Express Co, the largest U.S. credit card company by sales volume, and also Citigroup Inc which is considered to be the largest issuer of MasterCard branded credit cards.
However the default rates shown by, top Visa-branded credit card issuer JPMorgan Chase and Co, Discover Financial Services and Capital One Financial Corp ,were quite better than expected.
Posted on 07 May 2009
Tags: Amalgamated Bank, American Express Co., auto insurance, Bank of America, Bank of Atlanta, Bank of New York, BB&T, Brookline Bank, Brown & Co., Cable TV, California, car insurance, car loan, cellular telephone, Charles Schwab Bank, Charter One Bank, Chase Manhattan Bank, Cingular Wireless, citibank, Clackamas Community Federal Credit Union, Comcast, Coral Springs Nissan Auto Mall, Countrywide Bank FSB, Credit Score, Digital Federal Credit Union, eBank, equifax, Equifax Valley National Bank of NJ, EverBank, Fidelity Investments, Fifth Third, Flagstar Bank, GMAC Bank, hard credit inquiry, hard inquiry, Indiana Members Credit Union, Johnson & Johnson, LionBank, Marquette National Bank, Meadows Credit Union, Mechanics Bank, Muriel Siebert & Co., NASA Federal Credit Union, National1St Credit Union, Pentagon Federal Credit Union, PNC Bank, Presidential Bank, Principal Bank, Provident Central Credit Union, Qwest, Salem Five, savings/combination brokerage, soft credit inquiry, St. Paul Bank Corp., State Farm, SunTrust, Trans Union, US Bank, Verizon, VOIP, Wachovia, Washington Mutual, Wells Fargo, Wisconsin, Yale, Yale & Associates
There are two types of inquiries that a company may make into your credit record,i.e. “‘hard inquiry” or “soft inquiry”.
If a company makes a hard inquiry into your credit record,it will damage your credit score temporarily.Your credit score may be damaged only by a hard inquiry while a soft inquiry does not affect your credit score. 
If you are planning to get a mortgage or you need a car loan then in this situation even a few points difference in your credit score cannot be ignored and this small difference in your credit score may magnify into a considerably big change. So we need to know that how can we decide whether the inquiry is going to be “hard” or “soft”?
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