Beating The Cost Of Pricier Plastic

A good piece of plastic is harder to find these days. Faced with historically high loan losses--in the 6% range--and a record number of credit-card defaults, issuers are raising the costs of the cards in your wallet. "Consumers will have to get used to the fact that interest rates are going to be higher, and they're going to be given less," says H. Spencer Nilson, publisher of The Nilson Report, an industry newsletter.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.