Fair Isaac Corp. sees signs that credit card lenders — which make up the bulk of its credit-scoring business — are starting to bounce back from the depths of the financial crisis.
The credit card business "was under severe stress until fairly recently and now seems to be stabilizing," said Fair Isaac Chief Executive Mark Greene during a conference call with analysts and investors last week.
Credit card companies, like other lenders, have reined in their lending in the wake of the downturn. At the same time, demand for loans has plunged as consumers try to pay off debt and preserve their wealth.
Score volume among credit card lenders is still at depressed levels, Greene said, but it is picking up, an indication that issuers are increasing their lending activities. Particularly, Fair Isaac is seeing demand for its prescreen scores, which are used by lenders to market to new customers.
Fair Isaac, which reported a 46% increase in its fiscal first-quarter profit last week, said score volume among mortgage clients is also starting to recover, but that is a smaller portion of its overall business.
