Credit card offers through the roof
Credit card companies face big problems
Over the last couple of weeks, this blog (Credit Card News) has been exploring some of the problems that credit card companies currently face, and how they’re attempting to deal with them. In a nutshell, their main issue is that their customers are in droves not using their products as much as they used to, with some estimating that as few as one in five may be using their credit cards this holiday season. And, in an attempt to address this issue, card issuers are fighting each other for market share, and incentivizing customers to use their cards by enhancing rewards programs.
Credit card offers show explosive growth
Confirmation of this analysis came on Monday when Mintel Comperemedia published the latest results of its continuing study of credit card offers that are mailed to consumers. It found that 391 million such solicitations were received during the third quarter of 2009. That may sound a lot, until you learn that 1.2 billion were mailed in the same quarter of this year, an increase of more than 300 percent.
One encouraging point that emerged from the study was recipients’ readiness to read offers closely and actively make comparisons. In a statement, Andrew Davidson, who is a senior vice president with Mintel Comperemedia, observed: “Consumers are doggedly persistent when it comes to comparing credit card offers, and will use the rewards program with the best cash-back rate or highest points return per dollar.”
Credit card rewards to the fore
Certainly, banks seem increasingly to recognize the centrality of their credit card rewards programs to their future success. And they also appear to understand the new, more frugal and responsible mindset that many consumers now have.
As a result, Mintel Comperemedia says that 41 percent of rewards offers during the third quarter of this year were for cash-back programs, compared with only 28 percent during the same period in 2009. And they’re stressing the widespread application of their credit card rewards, with 45 percent of offers including the word “groceries” in that 2010 quarter, compared with just 20 percent in 2008.
Credit card use can be good for you
Card issuers may be enhancing their rewards programs for selfish reasons, but that doesn’t mean that the new benefits aren’t a great opportunity for consumers. Of course, if you’re already burdened with debt, or if you find it difficult to avoid overspending, then you are probably wise not to use your credit cards. But if you’re one of the majority who can handle money matters responsibly, then avoiding credit card use could be a costly error.
Why not check out the best cash back cards that are currently available?
Disclaimer:The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we cannot guarantee the accuracy of the information in this article. Reasonable efforts are made to maintain accurate information. See the online credit card application for full terms and conditions on offers and rewards. Please verify all terms and conditions of any credit card prior to applying.
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