Consumer Lending and Store Credit Cards Dwindle in Popularity

store credit, credit cards, lending, consumer loans, consumers, store cards, Quartz

It seems that the store credit card is dying a slow death as consumers turn down consumer lending offers from retailers.

Having previously been a wonderful payments system for both consumer and brand, storecards and the loaning of money to consumers has curtailed since the financial crisis. The high fees charged by credit card companies are still in place, but US citizens are far less interested in having a pocket full of credit cards – store or otherwise.

Quartz has summarised the data from the Federal Reserve Bank of St. Louis in the form of graphs, showing that this decline in consumer loaning, along with the sluggish adoption of credit cards, is down to a number of factors.

Credit card loan defaults spiked between 2007 and 2010, and the delinquency rate nearly doubled from 2005 to 2009 – leaving many banks to write off a large percentage of their credit card loans.

Tighter financial regulation has also made consumer lending a whole lot harder, making it a headache for many companies – who aren't established as banks – to deal with.

What's your take on all this?

Is it worth the worry or should store-owned credit cards have died a death years ago?


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  1. Roelof

    Consumers cannot afford the escalated lending any more and cannot manage multiple accounts. I would also prefer to owe just one creditor.

  2. Dave

    Surely this has to be great news for all of us? The more the use of store cards decline, the greater the rewards and incentives the stores will have to provide to attract our custom.

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