Due to the recession and economic slowdown, credit card companies have tightened lending standards and cut back on their credit card offerings. While this has led to a slow down in credit card default rates, the tide may once again be shifting as banks are once again fighting with each other to woo customers.
According to a Wall Street Journal article, credit card offers in the first quarter of 2011 reached 1.4 billion, a 69% increase from the first quarter of 2010. While offerings have not yet reached their pre-recession levels of 1.8 billion in the fourth quarter of 2007, the recent surge shows banks trying hard to rev up one of the most profitable types of lending.
As customers start to take on increased amounts of credit, default rates should begin to level off and begin rising once again in the near future.
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