Discover sees higher profits as credit conditions improve

Consumers with cards carrying the brand of one of the nation's largest lenders continued to make their payments on time and in full, as well as use their credit cards more often, during the fiscal first quarter.

Discover Financial Services recently announced that it saw profits surge 36 percent on improving credit conditions and growing balances, according to a report from the Wall Street Journal. The amount of money spent on Discover's branded cards during the three-month period rose 7 percent on a year-over-year basis to $25.6 billion.

Meanwhile, the amount of money the company set aside to cover loan losses from delinquencies and defaults slipped to $226 million, down from the previous year's first-quarter total of $271 million, the report said. Overall, its delinquency rate slipped to 2.22 percent from 3.59 percent in the same period last year, and 2.39 percent the previous quarter.

Missing payments on a credit card bill will have a severe negative effect on a consumer's credit standing, and it is imperative that they take the time to check their credit reports. Working with a credit repair company can help to clear up many issues the consumer may be facing.