Surging Credit Card Delinquency Rates are Affecting Credit Limits
26 June 2024 - 6:11AM
Business Wire
While credit card debt and delinquency rates often go hand in
hand, overextended credit card accounts may also lead to decreased
credit limits. CardRatings’ credit card experts offer tips for
minimizing the impact of these possible cuts.
Approximately 9% of credit card balances fell into delinquency
over the last year according to Federal Reserve data. In response,
credit card issuers are decreasing consumer credit limits to
minimize risks.
Bad economic conditions coupled with consumer behaviors like
overspending and late payments are the leading causes of these
decreases.
CardRatings.com, a leading credit card review and comparison
site, offers tips for how to minimize the impact of a potential
credit line cut and discusses the potential impact this could have
on consumers’ credit scores, in their article: How surging credit
card delinquency rates can affect credit limits
“Not only could a credit line cut affect a consumer’s purchasing
power, but it could also hurt their credit score,” says Jennifer
Doss, executive editor and credit card analyst at CardRatings.
“This is because a lower credit limit could result in a higher
credit utilization ratio, which accounts for 30% of a consumer’s
credit score. The good news is there are simple ways to help negate
this, such as paying down existing balances on other accounts and
lowering overall credit card spending.”
Doss is available to discuss credit limit decreases and tips for
handling a potential cut.
About CardRatings
CardRatings is owned and operated by QuinStreet, Inc. (Nasdaq:
QNST), a leader in providing performance marketplace technologies
and services to the FinTech, financial services and home services
industries. QuinStreet is a pioneer in delivering online
marketplace solutions to match searchers with brands in digital
media. The company is committed to providing consumers with the
information and tools they need to research, find and select the
products and brands that meet their needs. CardRatings is a member
of QuinStreet’s expert research and publishing division.
CardRatings innovated online credit card ratings and has been
offering independent ratings and reviews of credit card offers
since 1998. The website collects and maintains data on more than
800 credit card offers and carefully compiles objective lists of
the top credit cards by card type, making it easy for consumers to
find the right card to fit their needs.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240625642278/en/
Jennifer Doss Executive Editor jdoss@quinstreet.com
QuinStreet (NASDAQ:QNST)
Historical Stock Chart
From Aug 2024 to Sep 2024
QuinStreet (NASDAQ:QNST)
Historical Stock Chart
From Sep 2023 to Sep 2024