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Chase Test Likely Targeting Rate Surfers and At-Risk Customers

September 25, 2009

Analysis of:Credit Card Issuers Getting In Their Licks Ahead Of Reform | www.huffingtonpost.com

Chase’s new policy is most likely targeting rate surfers who will pay off at the end of their promotional period and at-risk cardholders who are using the lower rates for balance transfers from higher-rate issuers. The Chase test is likely looking to see the impact on concurrent runoff of existing higher-rate balances (which doesn’t apply to the surfers) and on whether the policy is accelerating delinquency rates among at-risk cardholders (those with lower FICO scores).

Test Likely Targeting Rate Surfers and At-Risk Customers

September 25, 2009

Analysis of:How to Stop a Credit Card Payment Increase | www.mainstreet.com

Chase’s new policy is most likely targeting rate surfers who will pay off at the end of their promotional period and at-risk cardholders who are using the lower rates for balance transfers from higher-rate issuers. The Chase test is likely looking to see the impact on concurrent runoff of existing higher-rate balances (which doesn’t apply to the surfers) and on whether the policy is accelerating delinquency rates among at-risk cardholders (those with lower FICO scores).

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