According to a recent statistic, it has been reported that the credit card charge-offs, that Moody’s Investors Services was entitled to, might see a sharp plunge in the time to come. It might go as low as it has never been in the past 20 years.

The rates are expected to go down to 4% by the next year. The rates for US Charge -offs were at their shining best in the first quarter of 2010, at 11%.

This shall lead to borrowers not being able to get an easy access to their unsecured credits.

"Consequently, card holders who remain are generally of higher credit quality, resulting in demonstrably better performance statistics in the months and years to come”, Analyst Luisa De Gaetano said.

There are also predictions being made that by the second half of this year, credit-card originations would increase.

Though it is estimated that the charge-off rates shall decrease by the end of next year, Moody is of the view that the unemployment rates shall not be much affected by it, they shall remain constant above 8%.

“Whatever increases in advertised interest rates we saw going into 2010 have not continued into 2011”, said Nick Bourke, Director of the Safe Credit Cards Project.