The Recent Ups and Downs of Credit Cards

Much has been happing in the world of credit cards lately. Availability and lending have been on the rise, while the balance for these cards has gone down. This makes things look good for the credit card industry.


In January 2009 the balance for the nation was over $730 billon; however in April 2012 the balance was down, it was just over $530 billion. That is a difference of around $200 billion. That is huge! More timely payments from borrower have a big effect on getting that balance lowered even more. In fact it has been what has caused it to go down this much thus far.


Even while the balance on credit cards is going down, the credit card industry is on the rise. This can be attributed to recent growth in credit card lending. There has also been an increase in available credit.


Card issuance has been on the rise as well. In February reports came out with results showing rises in many things from the previous year. For instance, card issuance went up almost 37%, and credit limits rose around 17%.


This rise in issuance and credit limits should not be a cause of concern. The balance is down form many, showing that they are being responsible and paying on their bills in a timely manner. This shows that not only are more people getting more cards, more people are getting larger limits, but also that more people are being responsible and making their payments on time.


It is believed that this all bodes well for America’s economic growth through the rest of the year. That makes it a good sign! It can help improve economic conditions. It also shows more financial confidence amongst Americans.


More young Americans are starting out in the world and getting these credit cards. These figures show that these young Americans are financially responsible, and understand what they are doing. Many have learned how to use these credit cards to their advantage, getting and raising credit scores for them.


No matter what age group is using their credit cards, things are looking up. Not just for the economy but for the credit card industry as well. The more credit cards are in demand the more employees these companies will need to stay on top of everything. This creates more jobs and helps the economy.


Many people in the past have worried that credit cards would ruin the financial independence of the younger generations. However, it has been shown that they may not need to have worried at all. The credit card industry is booming, and the national credit card balance is down. This makes a great combination!

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