LinkBack URL
About LinkBacksFitch 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.
-
Centurion Member
- Join Date
- Jun 2008
- Location
- Smogland
- Posts
- 1,399
1 in 8 store credit card holders expected to default in '09
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed. Regardless, anything I say is my honest opinion.
Current Cards: American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Citi Thank You Premier
-
Gold Member
- Join Date
- Aug 2008
- Location
- Toledo, Ohio
- Posts
- 28
If you follow the market you'll notice there has been a rebound the last couple weeks but we are far from being 'out of the woods'. News like this is brewing and will come to reality in the first and second quarter of the year pulling the economy back down with it.
There's no reason to hop back in this market now. If you want to get in and can't afford to buy in right now don't worry. There will be plenty of buying opportunities in the future because we are only fraction through this storm.
-
Centurion Member
- Join Date
- May 2008
- Location
- California
- Posts
- 162
Don't know about the others mentioned, but Home Depot credit card applications are processed through/by Citi.
Originally Posted by Mogul of Pineapples
-
Platinum Member
- Join Date
- Jun 2008
- Location
- c-town
- Posts
- 57
this is what happens when stores issue cards to anything with a pulse
-
Centurion Member
- Join Date
- Jun 2008
- Location
- Smogland
- Posts
- 1,399
Lou Dobbs made a mention about GE getting battered lately because apparently they are an underwriter of a number of store cards.
Re: Home Depot card - my mistake, you are right they are issued by Citi.Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed. Regardless, anything I say is my honest opinion.
Current Cards: American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Citi Thank You Premier
-
Green Member
- Join Date
- Dec 2008
- Location
- in Michigan credit card processing fees are too high!
- Posts
- 8
The problem with this now is dept stores and what not have gotten over cautious or over zealous would be a better term for not approving any new cardmembers. The bailout was supposed to increase available credit and really what we've seen is credit restricted since then. There is not going to be any economic recovery if we can't get access to money. I'm not saying we all should spend money we don't have but reasonable credit does need to be available thats how this world has run the last century is a credit economy.
-
Centurion Member
- Join Date
- Apr 2008
- Location
- Big Island, Hawaii
- Posts
- 107
Target went back to peddling their card at the local one here so they must not be hurting that bad from it.
Reply With Quote