The Prospects for Credit Losses are Improving

The prospects for credit losses are improving over the summer, with the credit card delinquency rates at most major U.S. card issuers(including Bank of America Corp and JPMorgan Chase & Co),fell last month, which seems that the recession of Americans are starting to go away. However, uncollectible loans were still high which created the downside of credit losses. And for many lenders, the credit losses even go up from a year earlier. According to regulatory filings by the companies on Thursday, this is condition become even worsen to JPMorgan, Capital One Financial Corp and American Express Co. Anyway, with the drop of delinquencies, there are fewer consumers late on their bills, which gives future loan performance great confidence.


Michael Taiano, who is an analyst at Sandler O'Neill, said that the card companies were around the corner. The credit losses are reaching their culmination or start to reach culmination. And the question is how soon they will come down, while the trend is down anyway. Once delinquencies stop growing, the credit losses tend to churn through the bad ones pretty quickly, because for the most part, the credit cards are short-term loans.

JPMorgan modified its previously gloomy outlook on credit cards, when reported robust first-quarter earnings on Wednesday, which again reinforced the card business' hopes.

Analysts had expected that More consumers can put the cash comes from tax refunds toward paying down debt, so delinquency rate will be improved during special seasonal, including tax season. The banks cut the unit's reserve for loan losses and said it had trimmed the loss expectations for its credit card business.

The economy conditions should always be taken into consider when improving the credit card companies losses. The consumer demand increasing, signaling comes from the highest rate of the businesses boosted inventories since July 2008,in February. The retail sales also jumped in March. Though there is a relatively slow-paced economic recovery as the economic reports on Thursday.

The Offers of the Most Expensive Credit Card in Different Card Companies

American Express credit cards is the most well-known super-elite brand. The company declined to disclose further details about the invitation-only program, and rise up to the site as taocredit.com program which has almost slavish devotion to its Centurion Card, black card lore. It is said the minimum spending 250,000 U.S. dollars. Or just as American Express said, the minimum spending requirement only cost 2500 U.S. dollars per year, while the cost of 5000 dollars to open the account.




The degrees of success to compete with the Centurion card is different among the rivals of credit card companies. Coutts & Co., private banks divvied from Royal Bank of Scotland and with only a few hundred invitation from the crustiest of the upper crust on purple card customers, which bothered them a lot, said British Queen Elizabeth II. California, Santa Barbara, is ready to process the introduction in Europe through a major Swiss bank, with the worry of only receiving an invitation-only White Card program.



Citigroup and Bank of America provided high-end cards with international travel, full time concierge service, perks for international travel, and rewards for purchases. through their high-end private banking and private client's businesses. Citi bank, which only offer in Asia, with the ads of providing additional features such as exclusive use of 80-foot day gold key winner luxury yacht, 48 hours of using the Maserati 4200 Spyder; plus chauffer-driven Bentley limousine on its Ultima card. Citibank Chairman also reduced the card fees, reduce time of flight credits currently available Marquis Jet / luxury private jet service, free breakfast and room upgrade, at Ritz Carlton, Mandarin Oriental, Fairmont Hotels and others.