Infographic: Good credit? Issuers want you
By Kristin McGrath and Juan Rodriguez
If you have good credit, hold out for the best deal on a new credit card because there's a lot of competition for your business, according to an Experian trends analysis, released Sept. 18. Have bad credit? You're in a much weaker position.
The chart below shows bank card origination dollars (the amount of spending new customers are putting on their cards) by VantageScore. While origination volume for consumers with good to excellent credit (that is, prime, near-prime and super-prime consumers) shows a sharp increase between the first and second quarter of 2013, volumes for those with poor and very poor credit (subprime and deep-subprime consumers) have nearly flatlined.
According to Experian's data, growth in the prime and near-prime segments in particular has fueled a $12 billion increase in new credit origination dollars. This suggests issuers are reaching out to these customers with enticing card offers -- and that these consumers are accepting them.
This rise in spending, however, coincides with a drop in credit utilization (the amount of the credit limit cardholders are using), according to the analysis. That's a good thing, as it shows that consumers who are snagging new cards are using them wisely and not revolving a lot of debt.
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Published: September 30, 2013
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