Subprime credit card offers on the rise

January 13th, 2011 - 9:14 pm ICT by Aishwarya Bhatt  

New York, Jan 13 (THAINDIAN NEWS) Market analysts believe that banks are beginning to lend again and most importantly they are lending to credit card holders.

The credit card savvy website, CardHub.com has reported that major lenders like HSBC and Capital One are among the top banks that have sent extended credit to credit card holders with FICO credit scores between 620 and 660.

The companies involved maintain that the move to lend to borrowers with perfect-less credit score is because of the desire of the banks to give access to credit to more people that want to borrow again.

Analysts believe that subprime credit card customers should brace themselves up for more of such access.

The president of credit monitoring website, SmartCredit.com, John Ulzheimer, predicts that, “We’ll see more of these offers this year to the cream of the subprime.”

Some analysts see the move as important step for the American economy to revive. Subprime borrowers were the favorite of most of the banks because of the high rates that accompany such loans.

According to credit card issuers’ advisor, R.K. Hammer Investment Bankers, the banks generate about 70 percent of their revenue come from subprime borrowers.

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