No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
@pipeguy wrote:
- Bank credit cards: Lending to sub-prime consumers showed a 41 percent increase from 2010 to 2011 as sub-prime borrowing hit a four-year high in December 2011 with 1.1 million new bank credit cards issued. New sub-prime card limits grew 55 percent from 2010 to 2011. At $12.5 billion in 2011, bank card limits are at their highest level since 2008 ($27.4 billion). Bank credit card growth continues, but is still well below pre-recession levels. In 2011 39.9 million bankcards were opened, an 18 percent increase from 2010 and the highest total since 2008. The increase in total bank credit card originations was accompanied by a 31 percent rise in total credit limits from 2010 to 2011. They year 2011 marked the first time in more than four years that credit lines increased, reaching $163 billion.
This is scary. Subprime lending already killed everything a few years ago and the banks jump right into it again.
For CCC's I'd say the sub-prime market is very profitable. Low limits that top out at $1000 or so, most in the $300-$500 range, higher APR's 20-25% on average. So very little exposure, much higher APR's - doesn't surprise me at all that the banks like low hanging fruit. It's not exactly like a liar loan to a maid and gardener for $500,000 with no documentation.
Now, the sub-sub-prime like First Premier or Credit One, they deserve what they get (the issuers) IMO.
Capitol 1 has been giving people mutilple low CL accounts for years so they could drive up OTL and yearly fees. I see more banks doing this to generate income taken away by the recent credit card act and pushback from users on debit card fees.
@Anonymous wrote:
@pipeguy wrote:
- Bank credit cards: Lending to sub-prime consumers showed a 41 percent increase from 2010 to 2011 as sub-prime borrowing hit a four-year high in December 2011 with 1.1 million new bank credit cards issued. New sub-prime card limits grew 55 percent from 2010 to 2011. At $12.5 billion in 2011, bank card limits are at their highest level since 2008 ($27.4 billion). Bank credit card growth continues, but is still well below pre-recession levels. In 2011 39.9 million bankcards were opened, an 18 percent increase from 2010 and the highest total since 2008. The increase in total bank credit card originations was accompanied by a 31 percent rise in total credit limits from 2010 to 2011. They year 2011 marked the first time in more than four years that credit lines increased, reaching $163 billion.
This is scary. Subprime lending already killed everything a few years ago and the banks jump right into it again.
With regards to anything being 'scary.' I think this is different than subprime mortage lending. With subprime mortagage lending that brough the world down, there was a bad assumption on the part of the banks that housing value would never collapse.
With subprime credit card issuing, it's no different than 'pay day loans.' high APR and AF's pays for the risk. They are basically screwing the vulnerable.
@pakman92 wrote:
@Anonymous wrote:
@pipeguy wrote:
- Bank credit cards: Lending to sub-prime consumers showed a 41 percent increase from 2010 to 2011 as sub-prime borrowing hit a four-year high in December 2011 with 1.1 million new bank credit cards issued. New sub-prime card limits grew 55 percent from 2010 to 2011. At $12.5 billion in 2011, bank card limits are at their highest level since 2008 ($27.4 billion). Bank credit card growth continues, but is still well below pre-recession levels. In 2011 39.9 million bankcards were opened, an 18 percent increase from 2010 and the highest total since 2008. The increase in total bank credit card originations was accompanied by a 31 percent rise in total credit limits from 2010 to 2011. They year 2011 marked the first time in more than four years that credit lines increased, reaching $163 billion.
This is scary. Subprime lending already killed everything a few years ago and the banks jump right into it again.With regards to anything being 'scary.' I think this is different than subprime mortage lending. With subprime mortagage lending that brough the world down, there was a bad assumption on the part of the banks that housing value would never collapse.
With subprime credit card issuing, it's no different than 'pay day loans.' high APR and AF's pays for the risk. They are basically screwing the vulnerable.
Even the worst of the sub-prime credit cards I've seen posted, are nowhere close to the PDL (pay day loan) racket.
When you're subprime, you take what you can get. Sure, some credit products are better than others, but the fact is at least people are starting to lend down to the unwashed masses such as myself, and getting it reported to the bureaus. That's the only way to drag onself out of the muck, thank Christ subprime lending is alive and well.
That's the purely altruistic side, which I can assure you none of the lenders care about. Bottom line, there's lots of money to be made in various subprime products, and most lenders want a slice of the pie.
@pakman92 wrote:
@Anonymous wrote:With regards to anything being 'scary.' I think this is different than subprime mortage lending. With subprime mortagage lending that brough the world down, there was a bad assumption on the part of the banks that housing value would never collapse.
This is scary. Subprime lending already killed everything a few years ago and the banks jump right into it again.
With subprime credit card issuing, it's no different than 'pay day loans.' high APR and AF's pays for the risk. They are basically screwing the vulnerable.
Seriously? You are equating Capital One and Orchard sub-prime "rebuilders" with Pay Day loans? AmEx with a $25 AF and a $200 hard linit, $500 CL Citi with a $59 AF anda $24.99 APR ? These might be rebuilders, but they are nothing like Pay Day Loans IMO.
Perhaps credit card companies are hoping for a bailout once they're "too big to fail".
I think the reason for the increase in the sub-prime credit is because the banks have gotten their bail out and their profits have gone back up. There is still money to be made by going after these toxic creditors so they decided to get back into the water. Banks are predators.
@Roarmeister wrote:I think the reason for the increase in the sub-prime credit is because the banks have gotten their bail out and their profits have gone back up. There is still money to be made by going after these toxic creditors so they decided to get back into the water. Banks are predators.
Banks like BofA and Capitol 1 perhaps. Just another reason why CU's rule.