While credit card issuers are citing an increase in earnings despite the high unemployment rate, a new report from the Wall Street Journal shows that these earnings reports should be taken with a grain of salt. The rise in success for companies such as American Express Co., Capital One Financial Corp., and Citigroup Inc. is due to their number of unemployed clients.

“We have never seen the kind of divergence we’ve seen this time [between unemployment and credit losses],” Discover Financial’s chief executive David Nelms told the Wall Street Journal. ”I expect credit will continue to improve. I’m much less optimistic about the total unemployment rate.”

People who stay unemployed for an extended period of time often can’t stay on top of credit card payments. They lose access to new credit and get written off, which means they’re no longer included in statistics describing the credit market. Card lenders have also adopted stricter standards, making it harder for new clients to find themselves in credit trouble.

Consumers looking to open a new credit card should be aware of the consequences of failing to make payments. Credit cards that are paid late or left unpaid can damage credit scores. Consumers with concerns about their financial situation might want to consider prepaid credit cards with set limits to avoid large monthly bills and long-term debt.

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