SOURCE: The Bedford Report

The Bedford Report

November 22, 2010 08:46 ET

Credit Card Accounts on the Decline -- Can the Holiday Season Provide a Rebound?

The Bedford Report Provides Analyst Research on Visa & Capital One

NEW YORK, NY--(Marketwire - November 22, 2010) - The unofficial start of the holiday season is right around the corner with "Black Friday" taking place later this week. It's an important month for the credit services industry and card issuers offer plenty of holiday season deals to persuade cautious customers into using their cards. However the latest reports show that the number of open credit card accounts in the US is decreasing rapidly, while the National Retail Federation recently warned that consumers will be relying far less on credit cards this holiday season. The Bedford Report examines the outlook for companies in the Credit Services Industry and provides research reports on Visa, Inc. (NYSE: V) and Capital One Financial Corp. (NYSE: COF). Access to the full company reports can be found at:

Earlier this month the Federal Reserve of New York released a report claiming that the number of open credit card accounts continued its decline during the third quarter. The number of open credit card accounts has dropped 24% since the second quarter of 2008. The Federal Reserve also added that revolving credit dropped for a 25th consecutive month, falling by an annual rate of $8.3 billion, or 12.1%.

Meanwhile, the National Retail Federation reported last week that consumers' use of credit cards for holiday shopping is at its lowest rate since 2002. According to the report 43.0% of shoppers plan to use debit cards as their primary form of payment for the holidays and 25.7% plan to use cash. A mere 27.6% of shoppers plan to use credit cards, the lowest since 2002.

The Bedford Report releases regular market updates on the Credit Services Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us for free at and get exclusive access to our numerous analyst reports and industry newsletters.

While consumers may not be using their credit cards like in years past, Visa believes that its prepaid gift card will remain a popular holiday present. According to the company's "gift giving survey," 85 percent of U.S. consumers would appreciate receiving a branded gift card -- like a Visa Gift card -- to buy something they really want or need.

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at

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