Discover says credit card use rose in 2Q - 13 WTHR Indianapolis

Discover says credit card use rose in 2Q

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LOS ANGELES -

Despite concerns about the economy, Discover's customers are using their cards more often and paying their bills on time at record rates.

The company's profit fell 10 percent in its March-May quarter, as the credit card issuer freed up less money from reserves set aside to cover customers' unpaid bills than a year earlier as its loans increased.

The economic shakeout of the last few years has left credit cards in the hands of more affluent consumers who are better able to pay their bills in full each month, while those with lower credit scores and presumably less ability to pay are now less likely to use credit.

Discover's stock added 74 cents, or 2.3 percent, to close at $33.57 Tuesday.

(Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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