Sox First

Banks are tightening up, even cutting back, on credit cards as defaults rise, reports investors.com. With the percentage of credit card loans written off as not being paid on the rise, it is clear that credit cards will be the next shoe to drop.

Innovest ratings agency analyst Laura Nishikawa has told the media that outfits like Bank of America and Citigroup are particularly vulnerable because they relied more heavily on money made from credit cards. True, the amount of exposure is considerably less than mortgage defaults. But you can bet that as the economy deteriorates, it's going to become more of a problem.

• The slow recovery
• Credit card losses to hit banks
• Delinquencies threatening credit card companies
• The looming credit card disaster