Expect More Conservative Credit Card Issuance in 2018 as the Lenders Face Increased Delinquency and Rising Interest Rates

One of the 14 exhibits included in this report

Increases in delinquency will drive up costs and negatively impact credit losses, a major industry expense. Growth has been solid, but the basics of credit management are what will bring in profits for issuers during 2018.

Mercator Advisory Group’s new research report The Credit Card Data Book: 12 Significant Indicators finds rising account delinquency and less profitability at credit card issuers in the United States, which is likely to lead issuers to tighten credit after a banner growth year.

More U.S. households are revolving credit card debt today than did before the recession, and contingent liability, the amount of open credit lines, will pass the previous high during 2018. Mercator Advisory Group cautions credit card issuers to be watchful of increases in account delinquency, which may further disrupt their profitability. Credit cards remain profitable for retail bankers, but reductions in non-interest revenue since the Credit Card Accountability Responsibility and Disclosure Act of 2009 (the CARD Act) have disrupted the business model. Credit loss protection must be a top consideration for card issuers.

“The return on assets (ROA) indicator for credit cards slipped again during 2017 and is trending downward,” commented Brian Riley, Director, Credit Advisory Service, author of this report. “Increases in delinquency will drive up costs and negatively impact credit losses, a major industry expense. Growth has been solid, but the basics of credit management are what will bring in profits for issuers during 2018.”

Highlights of the research report include:


  • The credit card aging process
  • Revolving debt
  • Open credit card account volume
  • Consumer credit delinquency
  • Bank return on assets
  • Projected interest rates

This research report contains 23 pages and 14 exhibits.

Companies mentioned in this report include: Bank of American, Chase, Citi, FICO, HSBC, LexisNexis Risk Solutions, Mastercard, Visa

Members of Mercator Advisory Group’s Credit Advisory Service have access to these reports as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.

For more information and media inquiries, please call Mercator Advisory Group’s main line: 1-781-419-1700, send email to [email protected]

For free industry news, opinions, research, company information and more visit us at http://www.PaymentsJournal.com.

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About Mercator Advisory Group

Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world’s largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.

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