News from Discover Bodes Well for the Future of 0% Credit Cards
The stock market performed well today. The Dow Jones Industrial Average (DJIA) gained 1.37% to close @ 10,753.62, while the broader S&P 500 added 1.52% to close @ 1,142.71. Financial stocks contributed to the day's advances, with companies like American Express (+3.6%) and JP Morgan Chase (+2.1%) looking good to investors.Another shining star in the financial sector was Discover Financial Services, which gained 2.4%. Earlier in the day, the company reported third-quarter net income of $261,000,000, and added:
This news is significant because it means that the approval rate for the most popular 0% credit card we recommend here at www.BalanceTransfer.cc, i.e. the Discover More Black Card -- is very likely to increase. Great news for anyone shopping for a consumer-friendly 0% Intro APR credit card.
"...Credit performance continued to improve, with net charge-offs down $102 million from the prior quarter and a net chargeoff rate for the third quarter of 7.18%...'
"...The very positive credit trends that began to manifest themselves earlier this year continued to benefit our results this quarter,'...'The ongoing improvement in the outlook for credit performance of our cardmembers has enabled us to accelerate investments for long-term profitable growth. In addition, Discover card spending continued to grow nicely this quarter and our third-party credit and debit network businesses achieved record transaction volumes..."
Another reason stocks did well today: According to the National Bureau of Economic Research, the Great Recession ended in June of last year, which means talk of a double-dip recession for the United States should abate:
"...The Business Cycle Dating Committee of the National Bureau of Economic Research met yesterday by conference call. At its meeting, the committee determined that a trough in business activity occurred in the U.S. economy in June 2009. The trough marks the end of the recession that began in December 2007 and the beginning of an expansion. The recession lasted 18 months, which makes it the longest of any recession since World War II. Previously the longest postwar recessions were those of 1973-75 and 1981-82, both of which lasted 16 months.
In determining that a trough occurred in June 2009, the committee did not conclude that economic conditions since that month have been favorable or that the economy has returned to operating at normal capacity. Rather, the committee determined only that the recession ended and a recovery began in that month..."
Of course, we could get another economic downturn in the near term, but if we do, it would be considered a new recession, and not a double-dip for the recent Great Recession.
Labels: 0_APR, 0_percent_credit_cards, discover_credit_card, recession
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posted by Steve Brown | 9/20/2010 05:43:00 PM
3 Comments:
It's interesting that they called an end to the recession back in July of last year. That's good news, except people really haven't felt it yet, especially with unemployment being so high.
Still it does give rise to a better card that people can afford and so that's always a plus. A lot of people may need that credit if the economy does take another drop.
Well written article and valuable insight and info.
Feel free to edit this comment to anything you want, that will assist your website profile. Thanks
> especially with unemployment
> being so high...
Yeah...it's encouraging news, but this jobless recovery looks like it's going to be long and painful. I think Americans won't feel prosperous again until their 401K plans improve in a significant way, and the housing market returns to normal.
> people may need that credit
> if the economy does take
> another drop...
Access to credit is and will always be a critical component to a sustainable recovery, no doubt, so it's very positive that credit card banks are out of the woods and making money.
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