Be Prepared for Arguments and Snooping When Sharing Credit Card Accounts

AUSTIN, Texas, Aug 27, 2008 (BUSINESS WIRE) -- Nearly one in five people who share credit card accounts say use of the accounts has sparked arguments with the other person, according to a new . The amount of personal conflict greatly increases when shared account holders are dissatisfied with their current credit card.

The findings are from the Second Annual Taking Charge survey, which investigates America's relationship with credit cards. The national study was fielded by GfK Roper Public Affairs & Media for the leading online credit card marketplace and consumer information source.

"Sharing a credit card account can be risky if the other person is irresponsible in their spending. Our survey shows there is some concern about this practice and how it affects relationships," said Ben Woolsey, Director of Marketing and Consumer Research for "Whether it's your children or your spouse or partner, you should really be careful about sharing a credit card account.

"Results also show that people's perception of having the right credit card for their needs makes a difference in their happiness," Woolsey added. "Americans sensing a disconnect between themselves and their credit card typically double their likelihood of experiencing relationship discord on shared credit card accounts."

The Taking Charge survey also finds:

-- More than half (51 percent) of cardholders have shared a credit card account, mostly with a spouse or partner (91 percent) and some with a child or adult child (21 percent).

-- Sharing an account makes 9 percent of the shared account holders feel closer to the other person.

-- Nearly one-fifth of shared account holders have used printed statements to check on the other person's spending; and nearly one-sixth (15 percent) have checked statements online.

-- Nearly one in five (17 percent) of shared account holders said they were concerned that their own credit scores would be negatively affected by the other person's use of the account.

-- A few shared account holders (7 percent) have canceled credit cards because they caused conflict in their relationships.

In addition, the poll shows the value of shopping around for a card that matches your needs. People sensing a misfit between themselves and their credit card are:

-- Twice as likely to have argued with their spouse, partner or child about their shared account (31 percent versus 16 percent).

source : http://www.google.com/news?

Citigroup Loses on Credit-Card Securitizations as Payments Lag

Aug. 4 (Bloomberg) -- Citigroup Inc. reported its first loss since at least 2005 on credit-card securitizations, signaling that risks may be growing in a business that generated $3.5 billion of revenue in the past three years.

The biggest U.S. credit-card lender lost $176 million in the second quarter packaging card loans into securities, the company said in an Aug. 1 regulatory filing. The New York-based bank completed fewer deals and was forced to mark down its own $9 billion stockpile of the debt instruments and other stakes the company amassed while selling them to investors.

Led by Chief Executive Officer Vikram Pandit, Citigroup manages about $202 billion of credit-card loans worldwide, about $111 billion of which have been turned into securities and sold, according to the filing. Delinquencies on the securitized portion have jumped by 16 percent since the end of last year to $2.16 billion as of June 30, Citigroup said. The firm's results may portend similar losses for rivals.

Banks and other card issuers ``are predicting higher net charge-off rates across the credit-card industry,'' said Meghan Crowe, a Fitch Ratings analyst who tracks credit-card issuers including American Express Co., Capital One Financial Corp. and Advanta Corp. ``Things have been worse than anticipated.''

Citigroup spokeswoman Shannon Bell declined to comment.

Job losses and higher food and gasoline prices have squeezed consumers, causing more of them to fall behind on bills and damping a market for credit-card debt that has so far withstood the collapse of the mortgage-backed securities industry. Wachovia Corp. analyst Glenn Schultz predicted in a July 18 report that loan charge-offs by credit-card securitization trusts industrywide may climb to 7 percent in coming months from 5.6 percent currently.

source : http://www.bloomberg.com/