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More Consumers Prefer Debit Cards

The number of consumers who stopped using their credit cards with regularity, or at all, increased considerably in 2010, according to a report from the Minneapolis Star-Tribune.

However, credit cards remain popular, and many believe the millions who have been locked out of credit card accounts were simply the victims of charge-offs.

Some of that reduction was the result of charge offs, which saw lenders strike many accounts from their records and bar consumers from being able to acquire new accounts, the report said.

"In 2010, there was a huge shift of people going from having credit cards to not having credit cards," Ezra Becker, the vice president of research at TransUnion, told the newspaper.

Consumers have made strides in improving their credit over the last year or so. This has lead to fewer charge offs and larger profits for most major credit card lenders.
 

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