More Americans open new credit card accounts in 2011
Consumers are increasingly opening new credit card accounts, which may suggest they are preparing to spend more money at retail.
The number of new cards issued in 2011 hit 42.3 million, marking a 14 percent increase from the previous year, a new report from TransUnion suggests. Approximately one-quarter of those cards, or 10.7 million, were given to Americans with poor credit histories.
Lending standards have tightened considerably, but the improvement of the U.S. economy is encouraging many consumers to apply for new credit cards. The better job outlook is also contributing to demand for new credit card accounts.
"Another factor helping make credit more available is that the rate of late payments has fallen dramatically in the past two years. Just 0.78 percent of card holders were late with payments by 90 days or more during the fourth quarter," Silicon Valley Mercury News notes, citing the report.
While mobile payments generated all the buzz last year, this further highlights the importance of having a point-of-sale system that can process credit cards.
