caption The typical American has a credit score of 675. source Stokkete/Shutterstock Credit-card debt is at an all-time high in the US, with differences in balances and credit scores across regions. Residents in the Northeast and Upper Midwest generally own more credit cards and have higher credit scores. Southerners, on the other hand, have lower scores and fewer cards. Here’s how people use their credit cards differently across the US. At the beginning of this year, credit-card debt in the US hit an all-time high. According to a study by WalletHub, Americans owed more than $1 trillion in credit card debt in January 2018, for the first time in US history. Delinquency rates on credit cards have fallen sharply since their peak at 6.77% in 2009, but data from the Federal Reserve Bank of Saint Louis (FRED) reveals that those numbers have been slowly creeping upward recently. Data from FRED also shows that interest rates on plastic have also been … [Read more...] about How Americans use their credit cards differently across the US
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Business HSBC's push into credit cards and personal loans in the United States will be no easy task as the bank faces entrenched domestic rivals and the legacy of a previous disastrous foray into U.S. lending. 15 Jun 2018 06:55PM Bookmark LONDON: HSBC's push into credit cards and personal loans in the United States will be no easy task as the bank faces entrenched domestic rivals and the legacy of a previous disastrous foray into U.S. lending.The move by HSBC to embrace a riskier but more lucrative slice of the U.S. market, that it has largely shunned in recent years, is part of its broader strategy announced on Monday to improve profitability - eyeing a global return on equity of 11 percent by 2020.The bank's U.S. return on tangible equity, a key measure of profitability, is currently just 0.9 percent.HSBC has just 0.1 percent of the credit card market in the U.S., according to data from RFi Group provided to Reuters, compared with 16 percent and 15 percent for market … [Read more...] about HSBC battles entrenched locals, past mistakes in US credit card push
source Matt Cardy/Getty Images For years, credit cards from JPMorgan Chase, Citigroup, and others have offered price protection, a benefit that refunds customers up to $500 if they buy an item and subsequently spot it cheaper somewhere else. Filing a claim was a laborious task, so few people ever did. Apps like Earny have emerged that use bots to automate the price-protection process, connecting with users’ email accounts to monitor purchases and hunt down refunds. Insiders say the rise of these tools and services has led to exponential growth in price-protection claims: “Nobody foresaw the onslaught of claims right now.” Citi recently revealed it would cut back on its price-protection offering, while Chase is planning to eliminate it entirely. Discover, which doesn’t work with apps like Earny, has cut other benefits but is keeping price … [Read more...] about For years, Chase and Citi credit cards offered a generous, under-the-radar benefit that protected customers. And then the bots arrived.
source Joe Raedle/Getty Images Late payments on credit-card debt remain on the rise. This contrasts the trend in other forms of credit including auto loans and mortgages, where late payments of 30 days or more are on the decline. Michael Pearce, an economist at Capital Economics, said higher interest rates have left more families struggling to pay promptly. Paying off credit-card debt on time is one of the most important ways to maintain a good credit score. It’s getting more expensive to borrow from banks in America, and some credit card holders are struggling to keep up. Interest rates, which influence the cost of borrowing, are on the rise after the Federal Reserve kept them near zero for years. That period of super-low interest rates achieved one key outcome: encouraging Americans to borrow, spend, and help grow the economy after the Great Recession. Last June, … [Read more...] about More Americans are struggling to pay their credit cards, and what’s holding them back is only getting worse
caption Credit card use is on the rise. source Thomas Cooper/Getty Images The number of credit card accounts increased by 2.6% compared to this time last year. Some experts believe the increase is a good sign for America’s economy. The credit card delinquency rate has also risen slightly, increasing from 1.69% to 1.78%. Credit card use is on the rise. The number of credit card accounts increased by 2.6% compared to this time last year, according to TransUnion’s Q1 2018 Industry Insights Report. Currently, there are 416.5 million credit cards and 174.9 million consumers with access to a credit card. Also on the rise is the average credit card debt per borrower, which increased by 2.63% since last year, jumping from $5,332 to $5,472. The serious credit card delinquency rates per borrower was 1.78% as of the first quarter in 2018, an increase from 1.69% a year ago. This is the first time … [Read more...] about Americans are using their credit cards more than ever — and some experts think that’s a good thing