At the end of 2008, experts and analysts did their work and predicted that 2009 would be a rocky one for borrowers, lenders and the economy in general. Those predictions are as follows:

• Prediction No. 1: Less credit will be available for everyone
• Prediction No. 2: Banks will not enact reforms to keep their customers happy
• Prediction No. 3: Banks risks will increase as cardholder risk lowers
• Prediction No. 4: Consumer card usage will drop
• Prediction No. 5: An increase in rewards targeting high-end customers
• Prediction No. 6: An increase in secured credit cards
• Prediction No. 7: Fraud will cost more
• Prediction No. 8: Credit card fraud may increase
• Prediction No. 9: Mobile payments increase due to better technology

Analysis: http://www.educationfreestyle.com

I will be explaining these predictions in a series of articles.

Prediction No. 1: Less credit will be available for everyone

Experts and analysts do agree that credit will be a little bit harder to get as well as credit cards in 2009. With people losing their jobs and economic problems increasing, People’s credit scores are likely to decline as well. This will make it difficult for people to get credit cards. Businesses that accept credit cards will be looking into a guaranteed merchant account for safety’s sake.

Everyone who utilizes credit will feel the crunch. Banks will be less likely to create new credit card accounts because they do not want to hurt their bottom line. This is because banks may find it difficult to sell their loans to the secondary market, which are investors who are looking for a cash flow investment. This also means that credit card processing online may suffer along with the economy.

This entry was posted on Tuesday, April 21st, 2009 at 5:28 am and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.