Old habits by credit card lenders on a comeback spree

Tuesday, January 18th, 2011

The world reeled under the wave of economic instability just a couple of years ago because of adhoc issuing of credit cards by credit card lenders. These companies issued cards to customers whose credit scores were way below the acceptable limits just to get more clients on board. However, this backfired and the world faced an economic slump. It seems that credit card lenders have not yet learned their lesson.

Banks and other financial institutions have begun issuing credit cards to people with poor credit scores. And this, not in small numbers! Here are some of the startling figures that reveal the fact the credit card companies are back to their old ways.

The highest issuer of credit cards to people with a poor credit history was Capital One with 22 million cards being given out. The second place went to HSB that issues 16 million cards. The third and fourth places were occupied by Citigroup and Discover respectively that issued 14 million and 10 million cards each.

In the current fiscal year, over 2.5 billion consumers will get that important credit card. It is estimated that over 17 percent of the people who will be issued credit cards are the ones with bad credit history.

When the lenders were questioned about the change in the mindset, this is what they had to say. Most of the lenders felt that it was unemployment and dropping real estate prices that led to an increase in the number of people with poor scores. Hence, they are willing to take the risk and go ahead with issuing cards to people in this category, albeit at a cost. The price that the consumers have to pay for this is definitely higher than that of regular cards.

Latest Bad Credit Card News

Wednesday, January 17th, 2018
At the beginning of the year, many people make resolutions about getting in shape. Starting diets, doing yoga, and going to the gym are the prevailing trends as a new year begins. ...
Wednesday, August 2nd, 2017
There’s been a lot of talk lately about how Millennials are dealing with their finances more responsibly than previous generations – avoiding debt, checking their credit scores, ...
Wednesday, March 29th, 2017
For folks who struggle with money, being approved for a credit card has long proved a challenge. And now a new study shows that 72% of Americans with nonprime credit scores are ...
Tuesday, January 31st, 2017
Fewer adults expect to go to their graves owing money to their credit card issuers than they did a year ago, according to a new survey.
Thursday, February 5th, 2015
When you are looking for a new way to financing, you might want to consider a personal loan instead of a credit card. Personal loan can be an inexpensive way to consolidate debts, ...
Best Credit Offer
First Access Visa
Click the Compare link to compare the checked cards side-by-side at the comparison table.
Consumer Rating: 4 / 5
Horizon Card Services Horizon Gold Credit Card
Copyright © 2001-2018 BestCreditOffers.com All Rights Reserved.

* The BestCreditOffers.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. BestCreditOffers.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the BestCreditOffers.com website are property of their respective owners.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions.

BestCreditOffers.com makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that BestCreditOffers.com may be compensated by the credit card issuers when the readers apply for a credit card through this site.

BestCreditOffers.com is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. BestCreditOffers.com does not review or list all available financial or credit offers.

Disclosure: Not an access card.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.