Mogul of Pineapples
- Centurion Member
- Posts: 1271
- Joined: Sun Jun 01, 2008 11:32 pm
- Location: Smogland
Fitch Ratings who is one of the three main credit card rating companies for issuers and bonds (the two biggest are S&P and Moody's) had a recent release that they foresee 1 in 8 store cardholders defaulting within the next year. This is because of course store credit cards are notorious for attracting sub-prime customers, unlike normal credit cards.
They also report the biggest issuers for retail credit cards are Citibank Omni Master Trust and GE Private Label Master Trust. The stores that manage their own credit cards were the names you'd expect like JC Penny, Home Depot, Sears, Wal-Mart, Best Buy, etc.
Store cards are now like the sub-prime mortgage meltdown, except in the credit card world.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.
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