One Time Credit Cards Up 9% Like Three Credit Savings

Capital One Financial’s latest results show that consumer spending is continuing, but the economic slowdown has eased. Allowance for bad debts.

CEO Richard Fairbank said during a conference call with analysts that “consumer spending remains strong – and it’s trending well into 2022 and is reaching levels of the disease.”

The company said in his latest publication Domestic short-term loans rose 8% year-over-year to $131.6 billion. Sales volume in that industry was down 9% to $152 billion.

The rate of payment for the card sector in the country, according to the file, is 3.2%, which was 1.5% in the same period in 2021.

In the car loan segment, the rate of pay-off was 1.7%, from 0.6% last year. Loan originations fell sharply, to $6.6 billion, down 20% year over year. Auto loans decreased $1.2 billion, or 2%, to $78.4 billion.

The company said in its results that the provision for bad debts increased to $1.4 billion year over year, which is $384 million in the year ago.

‘Unfortunately Bad’ Economy Forward

Asked on the conference call about the ideas behind the lending activity – especially the credit card in the country – management said on the conference call with analysts that the classification of debt and the growth of loans that resulted. Likewise, in the words of CFO Andrew Young, a set of economic fundamentals that “operates worse” than corporate strategy may hold.

That is the basis of Capital One, according to the information, that unemployment is about 5% at the end of the year, and the recovery of loans is decreasing.

Right now, as Fairbank said during the call, the percentage of customers who are making only minimum payments on their cards is below the epidemic, the percentage customers who pay in full are more on the first level.

“These are all good signs,” said the administration.

When asked about credit ratings on the phone, the CEO said that “at first the ratings were more pronounced in some areas, more than others. this has always been the caseā€¦ advertising is happening everywhere but it is more visible at the lower end of the market. Recently we have seen the same level of diversification in our industry and sectors .

That effect extends to FICO scores and to higher incomes, he said.

And looking down the credit scores, 69% of the card business in the company had FICO scores greater than 660, and the rest below that level. As for auto loans, the additional data shows that the FICO score for 47% of the loans started from below 660.

The company’s 30-day delinquency rate in the domestic paper industry was 3.4%, up from 2.2% last year.

As Fairbank said on the call, “crime rates are a good predictor of where it’s going to go in the near future.”

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