topic Re: Discover's Delinquency Rates Spike in Credit in the News

Discover's Delinquency Rates Spike

ejbarraza — Wed, 24 Apr 2024 00:17:02 GMT

Re: Discover's Delinquency Rates Spike

CreditCuriosity — Wed, 24 Apr 2024 01:13:35 GMT

Hopefully Cap1 hasn't settled on the purchase price yet although suspect Cap1 losses to look similar if overlayed as a percentage or most lenders for that matter.

Re: Discover's Delinquency Rates Spike

FlaDude — Wed, 24 Apr 2024 02:29:54 GMT

So is there any reason to believe that this is specific to Discover or are most lenders likely seeing the same?

Re: Discover's Delinquency Rates Spike

CorpCrMgr1 — Wed, 24 Apr 2024 03:21:25 GMT

Thank you for posting. Interesting!

Re: Discover's Delinquency Rates Spike

TrapLine — Wed, 24 Apr 2024 07:19:10 GMT

Some interesting posts. For purposes of science it would be insightful to know how other financials see the losses?

As an old customer of Discover (1986), I have found them to be there for the customers over the years and am saddened by what the future holds for them. In reading around a change in how they do business will likely be required to survive. As consumers it may affect our relationship with them.

For myself, there will be no migrating to Cap1. Eight years of their banking methology is all I will consume.

Re: Discover's Delinquency Rates Spike

MarkintheHV — Thu, 25 Apr 2024 08:35:07 GMT

@FlaDude wrote:
So is there any reason to believe that this is specific to Discover or are most lenders likely seeing the same?

My guess would be that this probably tracks along with other issuers who have approval criteria being on the lax side. I think all of them are up, just the ones with stricter criteriea are probably are a little lower.

Re: Discover's Delinquency Rates Spike

CreditPoor — Wed, 24 Apr 2024 17:48:42 GMT

Lol, maybe it's because they've 4506c everyone to death and people are like forget it. They figure Cap1 is buying it and are generally forgiving

Re: Discover's Delinquency Rates Spike

FicoMike0 — Thu, 25 Apr 2024 00:41:22 GMT

This 4506c,wa chu talk'in 'bout, Willis?

Re: Discover's Delinquency Rates Spike

tricie17 — Thu, 25 Apr 2024 15:12:00 GMT

I think that this has more to do with people holding on to too many cards (debt) during an extremely hard economy and not being able to maintain those cards. And the supposed merger.

Re: Discover's Delinquency Rates Spike

pizzadude — Thu, 25 Apr 2024 17:39:50 GMT

I suspect this trend is affecting all banks / lenders, although as mentioned above sub-prime and lower tier lenders probably are harder hit.

Interest rates increases are likely a contributing factor also.

Re: Discover's Delinquency Rates Spike

IntegerIntrovert — Mon, 29 Apr 2024 08:21:11 GMT

I saw a version with other lenders overlayed circulating on Reddit.

Re: Discover's Delinquency Rates Spike

ejbarraza — Sat, 04 May 2024 23:17:03 GMT

@pizzadude

There is a bifurcation of defaults between large and small banks, but overall the trend is higher.

Re: Discover's Delinquency Rates Spike

RedKhaos — Sun, 12 May 2024 00:44:44 GMT

Might explain the Capital One Discover merger. It's a fight for survival as they are both subprime lenders with a lot of their business in credit cards. They can combine customer deposits to pay for defaults and slash payroll... it's a tale as old as time. Bad deal for customers and employees though.