Comments on: What economic conditions cause credit card company stocks to perform well? http://www.fn-live.com/what-economic-conditions-cause-credit-card-company-stocks-to-perform-well.html Loan and Financial Info Mon, 01 Feb 2010 15:06:52 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: andrewtrades http://www.fn-live.com/what-economic-conditions-cause-credit-card-company-stocks-to-perform-well.html/comment-page-1#comment-1212 andrewtrades Thu, 20 Aug 2009 16:21:33 +0000 http://www.fn-live.com/what-economic-conditions-cause-credit-card-company-stocks-to-perform-well.html#comment-1212 Last year on into early this year, when liquidity in the lending markets was high and it was extremely easy to borrow money. People leveraged themselves to the hilt, took out second mortgages, maxed out their credit cards, and bought expensive jewelry, plasma screen TVs, and iPods. Now, we're facing different market conditions. Last year on into early this year, when liquidity in the lending markets was high and it was extremely easy to borrow money. People leveraged themselves to the hilt, took out second mortgages, maxed out their credit cards, and bought expensive jewelry, plasma screen TVs, and iPods.

Now, we’re facing different market conditions.

]]> By: DrIG http://www.fn-live.com/what-economic-conditions-cause-credit-card-company-stocks-to-perform-well.html/comment-page-1#comment-1211 DrIG Thu, 20 Aug 2009 15:00:08 +0000 http://www.fn-live.com/what-economic-conditions-cause-credit-card-company-stocks-to-perform-well.html#comment-1211 "Would they rather see their customers paying responsibly, or would they rather have late payments so they can rack up fee income?" It is not an either or proposition. Of course the credit card companies would like to receive higher fees when people are late with their payments. They do not like to go to court because of the legal expenses when people do not pay. They are most concerned by bankrupcy which means in many cases tha the person is rrelieved of his debt and does not pay anthing at all. They loose here. Credit companies have found other ways to increase their bottom line. They have for example reduced the number of days after the billing cycle ends in which the person who has the credit card is required to pay, they have raised interest rates for individuals who are late in paying their credit card bill and even raised the interest rates for late payments on other bills. “Would they rather see their customers paying responsibly, or would they rather have late payments so they can rack up fee income?”

It is not an either or proposition. Of course the credit card companies would like to receive higher fees when people are late with their payments. They do not like to go to court because of the legal expenses when people do not pay. They are most concerned by bankrupcy which means in many cases tha the person is rrelieved of his debt and does not pay anthing at all. They loose here.

Credit companies have found other ways to increase their bottom line. They have for example reduced the number of days after the billing cycle ends in which the person who has the credit card is required to pay, they have raised interest rates for individuals who are late in paying their credit card bill and even raised the interest rates for late payments on other bills.

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