Credit Card News

Credit Card News

Just days after a report from the federal government showed that consumers' credit card debt rose 11.2 percent in May, another revealed that the amount of purchases put on borrowers' accounts for necessity purchases rose considerably as well. According to the latest SpendTrend report from the analysis firm First Data Corporation, the dollar volume on credit card purchases made in May rose 8.2 percent on a year-over-year, up from the 5.8 percent growth observed in April.

It's believed that lenders across the country will continue to expand their credit qualification requirements for borrowers over the next six months to include more people whose scores are considered subprime, according to a new survey of industry experts conducted by the Professional Risk Managers' International Association on behalf of the Fair Isaac Corporation, better known as the credit scoring bureau FICO.

Americans' outstanding credit card balances increased significantly in May, as borrowing surged $8 billion - an 11.2 percent increase - to a total of $870.2 billion, according to the latest monthly statistics on consumer credit released by the Federal Reserve Board. This stark increase came after consumers cut balances by 4.9 percent in April, and was large even in comparison with the previous monthly increases observed throughout this year.

A new "smart" credit card by the startup company Wallaby Financial claims to be able to help consumers maximize the efficiency of their various accounts by combining all of them onto one piece of plastic, according to a report from the tech news site Mashable. Consumers get the service by providing Wallaby with the information for their various existing accounts, and then receive their new smart card soon thereafter.

JPMorgan Chase is now pushing out its new Future Proof point of sale terminal to merchants, and believes the new payment processing device will be able to provide significant benefit to consumers, merchants, lenders and payment processors alike, according to a report from the company.

New data from the credit scoring bureau Equifax shows that lending to subprime borrowers increased 41 percent in 2011, rising to a four-year high in December, according to a report from MarketWatch.

Moody's Investors Service recently downgraded the credit ratings for major financial institutions such as JPMorgan Chase, Morgan Stanley and Bank of America, which prompted many consumers to wonder about the security of their current accounts with the banks, according to a report from The Associated Press.

This type of crime occurs when a consumer takes out a credit card as normal but does so having no intention of actually paying back the balance they accrue, and the problem is more common than many might think, according to research from the Mercator Advisory Group. This type of fraud, unlike others, is difficult for lenders to spot because it is less apparent when the account is first taken out.

Financial institutions nationwide are now significantly broadening their lending qualification standards to incorporate more borrowers who have subprime credit ratings, but those who seek this type of financing will likely pay dearly for doing so, according to a report from the financial advice site Smart Money.

All six of the nation's top credit card lenders saw their delinquency rates decline during the month of May as consumers continued to get a better handle on their outstanding balances, according to a report from the Wall Street Journal.