thesession

Tax Rebates Helping Americans Pay Down Credit Card Debt

The amount receivables also went up. I know some of this can be explained, but should be noted.

"Aggregate outstanding principal receivables... increased $11.6 billion to $442.4 billion in May, which is the highest level recorded by the index, from $430.8 billion in April."

"Principal receivables had been trending up since the first quarter of 2006 reporting a year-over-year increase of approximately 11.5% for May"

Double Whammy: Bank Card Companies May Be Next

Can one assume that if FICO was meaningless in predicting non-prime mortgage defaults, that same credit history is likely to be meaningless in predicting CC defaults as well? Thus subprime CC lenders may not have done a good job in portfolio underwriting. They do have better risk pricing but are unsecured and have revolving credit.

Financing of these portfolios is all time highs. I think you really have to watch the performance trends in the CC portfolios to call this one, most important being "excess spread".

They provide that data on their websites, so follow the trends.