How New Trends in Credit Card Industry Affect Your Credit Card Deals?
Credit card companies are unstoppable in their attempts to extend their client bases. They design new credit cards and consumer categories, develop new credit programs, and offer new incentives. They fight for every client in a blood-and-guts way. What latest credit card market trends are on the agenda?
America's biggest and so much loved holiday is on the doorstep. Christmas shopping season is in full swing. So, financial advisers and experts have concentrated their forces on giving tips and warnings about credit card use at holiday season.
Credit card companies and banks do not fall behind either. They have prepared special credit programs, gifts and bonuses for their customers.
The "Clear and Simple" program that Chase has launched this summer proves itself to be very helpful for credit card users. It was designed to educate card holders on credit card management. Among consumer-friendly programs within the bounds of "Clear and Simple", the most appealing is, probably, that Chase Bank abolishes the practice of accruing interests when your credit score gets damaged.
More good news for credit card holders. Chase gave up the practice of two-cycle billing. This method is not favored by card owners, especially by those, who carry a balance on their cards. Now Chase's customers can use one-cycle billing. Isn't it great to pay interest for one month instead of two?
Have you heard of a notorious universal default clause? This is what you are to stay away from when making your credit card deals. Once you are late with your home or car loan, or credit card payment just one time you face sky-high interest rates of about 30 percent. However, some credit card companies try to fight against such unfair practices and eliminate universal default.
There was a great deal of talk about the introducing of legislation that will protect credit consumers from abusive practices used by some credit card issuers. This law, probably, is to come into effect some day. But for now be careful signing up for another offer and read the fine print.
This is what concerns new programs and credit companies' practices. And here is what financial experts forecast about credit card fees, rates, and other features.
Average interest rate will continue to climb. This, obviously, will not come as a surprise to you. But in case your credit score is 720 or higher, you have nothing to worry about. Card holders with good or excellent score do not have to pay more than a 10% rate. Fees, by the way, will also grow.
Low rate card deals are here to stay but more catches are waiting for you with such deals. Chase, for instance, has recently withdrawn the cap from balance transfers. Now, instead of paying a maximum of $ 75, you will pay 3% of the amount transferred. Doesn't sound that terrifying? Just imagine your transfer makes up $ 10,000. That will be $ 300. So, read the fine print very carefully in order to avoid credit card traps.
Credit card protection will continue to be a problem. The more new security measures and programs credit card companies introduce - the more sophisticated credit card fraudsters get in their attacks. That, I believe, is no news either. So, just be extremely careful when you make your credit card deal, pay for purchases, when you shop online, and so on. Give your personal data only in case you are one hundred percent sure of its protection.
So, that is what we can expect from credit card companies in the near future. Al in all, despite the rise in rates and fees, inflation, and attempts to make money on you, credit card companies value their every client and are ready to do their best just to keep you with them. Thus, you can boldly hope to get best credit card deals with new alluring and beneficial terms.
marianne 09:02 AM, December 19, 2007
i do not care. i have my cards and i'm satisfied with these.
in the end, who needs these silly trends???
Identity theft cases have become as common as dirt. The crisis US economy in at the moment triggers the rise of credit crime rate. Crooks do not even have to invent new more sophisticated ways to steal credit cards or identities themselves. Credit consumers struck by credit market crunch do not think much about protection against thieves now.
But now taking security measures against credit fraud is more important than ever. Say you discovered that you fell victim to identity theft. Do you have an instant action plan? Do you know what to do in order to minimize the grave consequences the fraud can bring about? Credit report freeze is the answer.
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Too much is never enough. Especially when it comes to money. Your income is the cap on the amount of money you can spend. But if you have credit cards, your buying power increases and your spending limits do not bother and restrain you that much. However, nearly every credit card holder would not refuse to have a bigger credit limit.
Even if you carry a no limit plastic, you still have a cap on credit card spendings. Your highest balance is usually considered to be your limit. But can you increase your credit limit? And how will it affect your credit score?
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Credit consumers, who want to highlight their financial standing, can find credit products that will fit their interests. There are the so-called status-credit cards on the market. Customers can choose silver, gold, platinum or black credit cards. All of them give certain privileges and that very status to their owners.
What is interesting, you do not even need to have excellent or good credit and really high income to get one of the status credit cards. They are available to bad credit owners as well. Let's take a closer look at Gold credit cards. Learn more about features, options and services that Gold credit cards offer.
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