cancel
Showing results for 
Search instead for 
Did you mean: 

America is hooked on credit cards — and it's pretty clear why (Business News)

Highlighted
Established Contributor

America is hooked on credit cards — and it's pretty clear why (Business News)

Read it here: http://www.businessinsider.com/why-credit-cards-more-popular-than-debit-cards-2017-6
OpenSky®VSA: $375 | First ProgressMC: $404 | CapOneMC: $605 | CapOneQSMC: $2350 | Cabela'sVSA: $4000 | Barclaycard® RewardsMC: $20000 | BlazeMC: $2000 | First SavingsMC: $1500 | LegacyVSA:$1750 | AMEX BCP®: $9000 | AMEX Hilton Honors™: $6000 l Discover: $5300 | Chase Freedom: $4800 | Chase SLATE: $3800 | CSP®: $7000 | United MileagePlus®: $7000 | Amazon RewardsVSA: $4800 | Old Navy: $4500 | Gap: $4500 | Banana Republic: $4500 | Walmart: $10000 | SamsClub:$10000 | AEO®VSA: $8000 | TJX MC: $6000 | Amazon: $4000 | Belk: $5000 | Macy's: $20000 | J.Crew: $3000 | Overstock: $6200 | SMG VSA: $3800 | Abercrombie: $2100 | Express: $2900 | Buckle: $2500 | Kay: $6750 | PayPal: $3520 | Citi® / AAdvantage® Platinum: $16000 ***FICO08 as of: Dec 19th 2017-EX: 731 | EQ: 727 | TU: 756***



2 REPLIES 2
Highlighted
Established Contributor

Re: America is hooked on credit cards — and it's pretty clear why (Business News)

Interesting read.

 

Here is one thing that stood out to me:

 

The escalating credit card rewards war has succeeded in winning over customers. But there are some ominous signs that credit card companies may have issued credit too freely.

 

This just reminds me of the 2008 housing market crash just waiting to happen again but with credit cards.




FICOBeginning (6/2017)Current
Equifax636707
Transunion627725
Experian623726
Message 2 of 3
Highlighted
Moderator Emeritus

Re: America is hooked on credit cards — and it's pretty clear why (Business News)

It's hard for many average Americans (read as definitely not those on this forum with 20+ tradelines) to get monthly credit card payments equivalent to their mortgages.  Average credit card debt (which I think was calculated as amount of aggregate debt divided by number of consumer with 1+ credit cards) is something like 5.6K IIRC from a recent posting, that's not a massive sinkhole for most people.

 

Also the wider market isn't really exposed to credit card defaults like the a whole crapload of people were with the mortgage backed securities that were being peddled to everyone on secondary markets. 

 

I don't see a bunch of doom and gloom on this count; what surprises me in the article is that cash payments have held steady at 10%, and that debit cards are still so prevalent in comparison to credit cards.




        
Message 3 of 3
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.