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Credit card issuers are just now beginning to ease the reins on issuing cards. The lack of spending in a troubled economy is pushing them to issue more cards to a wider variety of people with less than perfect credit scores.
The average consumer has been paying down debt and reducing their card usage to “must haves” like gas and groceries.
This ebb in the tide of the credit card business has resulted in some good things for customers like better perks and lower fees.
Even the delinquency rate had gotten quite small.
However, there has been a bit of an uptick in that area. Some consumers are once again sending their payments in late, choosing to face the late fee rather than pay on time. This may give lenders just the fuel they need to raise penalty fees once again.
Six of the biggest names in credit cards have reported increases in past due accounts. Bank of America, Citibank, Capital One, Discover, American Express and Chase all saw a moderate increase in delinquencies in September of 2011.
The real question is whether this will be enough motivation for fees to once again start an uphill climb. For the moment, it may at least reduce the number of offers in the mailbox.