Credit Card Asset Quality Deteriorating

Posted on June 27, 2008
Filed Under Credit Card News, Credit Rating | Comments Off

NEW YORK — Fitch Ratings said today that as we approach the midpoint of 2008, a weakened U.S. economy continues to exert pressure on the consumer, as observed through the continued deterioration of credit card portfolio performance. Issuer credit losses have approached, and in some cases surpassed, five-year historical averages and many management teams are predicting worsening metrics for the latter part of 2008 as home price depreciation, rising unemployment rates, and higher energy prices continue to put pressure on consumer wallets. While Fitch believes card issuers have taken steps to manage the near-term pain, Fitch expects the credit quality picture to get worse before it gets better. Read more

Discover Profit Falls on Credit-Card Debts

Posted on June 15, 2008
Filed Under Credit Card News, Discover Card | Comments Off

Bloomberg — Discover Financial Services, the credit-card company spun off from Morgan Stanley, dropped 8.2 percent after saying more overdue payments from customers curbed second-quarter profit.

Income from continuing operations in the period ended May 31 fell 19 percent to $202 million, or 42 cents a share, from $250 million, or 52 cents, a year earlier, the Riverwoods, Illinois- based company said in a statement today. Pretax income from the U.S. card unit slid 20 percent. Read more

Squeezed by credit card issuers

Posted on May 28, 2008
Filed Under Advice, American Express, Mastercard, Visa, rates | 1 Comment

Credit Card companies use all sorts of tactics to wrestle every penny out of customers. Here’s what you need to know.

When 53-year-old Don Cressman was struggling financially, he charged a bit more than usual on his card, but carefully watched his balance to make sure he didn’t go over his limit. When he opened his credit card statement, he was shocked to find a $29 over-the-limit fee added to his bill. Read more

Senate letter for detailed credit card fee info

Posted on May 21, 2008
Filed Under Credit Card News, Legal/Government, Mastercard, Visa | Comments Off

Several U.S. senators want Visa, Inc. and MasterCard, Inc., the dominant electronic payment companies, to break down detailed costs associated with transactions called interchange fees, according to letters obtained by Reuters on Tuesday.

In letters to the two companies, the senators demanded information about methodologies and specific data used to establish interchange fees. The letters are dated May 23 and demand the information by June 3.The letters were signed by Democrats Richard Durbin of Illinois and Herb Kohl of Wisconsin and Republicans Olympia Snowe of Maine and Arlen Specter of Pennsylvania. Read more

New credit card rules could affect you

Posted on May 14, 2008
Filed Under Advice, rates | 1 Comment

Proposals by federal bank regulators would zap questionable credit card practices. But while consumer advocates say the proposals are good first steps to rein in abusive tactics, card issuers bristle they will drive up costs and make credit less available.

John Ulzheimer, president of consumer education for credit.com, a credit education and financial services Web site, says the truth is likely somewhere in between. He said many card practices were clearly arbitrary. But he said card issuers may try to recoup profits by charging more. Read more

Delta-AmeEx new credit card

Posted on April 24, 2008
Filed Under American Express, Credit Card News, Launch, Reward Cards | Comments Off

Delta Air Lines has teamed up with American Express to release two new co-branded credit cards. The Delta Reserve Credit Card and the Delta Reserve for Business Credit Card will offer customers the chance to earn Medallion Qualification Miles (MQMs). Read more

Credit Card Insurance Programs

Posted on April 17, 2008
Filed Under Advice | Comments Off

Credit card companies offer a variety of insurance options – the four main insurance coverages you can purchase from your credit card include disability, credit life insurance, property, and unemployment insurance.  The question remains- is it worth it to you to pay an extra few dollars each month to add these insurance policies to your credit cards?  Here is what each of the various insurance options cover: Read more

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