The major credit card issuers -- those that loan the money for credit card purchases -- had a difficult year in 2020. The primary reasons were the pandemic and the resulting recession, which caused people to lose their jobs, businesses to shut down, and spending to slow dramatically. All of these things reduce the amount of money that people spend using credit cards.
But as tough as 2020 was, there is optimism for 2021. Spending gradually increased in the second half of last year, and with the COVID-19 vaccine supply growing quickly, there is great hope that life will return to some semblance of normalcy this summer. For credit card issuers like Synchrony Financial (NYSE: SYF), that's very good news. It's a stock you want to keep an eye on -- here's why.
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