While the economy continues its slow recovery from the recession, credit card issuers are showing strong signs of life with a deluge of card offers in the mail to all demographics.
“The spike in credit card mailings was significant this past year,” said Anuj Shahani, whose job is to oversee tracking services for the global market research firm Synovate.
Credit card companies have intensified their direct mailing programs with their best credit card offers soaring up 103 percent to 2.82 billion last year versus 1.39 billion in 2009. Shahani said that Synovate expects mailings to increase again in 2011, but at a much slower rate.
“The competition among credit card issuers has definitely stepped up,” adds Fastcreditcardapprovals.com . “They are sending out more solicitations,” claims Levy, “especially to the most sought-after customers: those with good to excellent credit scores.” He notes that credit card issuers are trying to win over new customers primarily with meaningful cash back and mileage incentives. For example, certain Visa credit card offers include 1.25 miles per dollar on every purchase and 10,000 bonus miles, equal to $100 in travel.
During the height of the recession, propositions from cards issuers were scarce due to the record rate of defaults by financially-strapped consumers. People were simply not making their monthly credit card payments. Congress also enacted sweeping reforms, with Obama signing the federal Credit CARD act into law in May 2009, a law that caused the credit card industry a bout of indigestion and adjustment.
But as the economy improves, late payments and defaults are tracking lower. “With the CARD act in place and the economy doing better, credit cards mailers have come back with a bang and are making up for lost ground,” says Shahani.
For those in the market for some new plastic buying power, sites such as Fastcreditcardapprovals.com can be extremely useful in helping find the best offers available. Whether you are
looking for an airline miles card, a more general rewards credit card or something with a low interest rate for carrying balances, it’s important to do a little research to make sure that you are selecting the most appropriate card to meet your needs. Make it a point to read the fine print so that you can be clear about what exactly is on offer. This will reduce the risk of being socked with unexpected fees or sky-high interest rates on revolving balances.
“Do your homework before yielding to a tempting offer and be aware that applying for a lot of credit cards can ultimately have a negative effect upon
your credit score.” – says Doug. – “Remember that a better score will avail you of better offers down the road!”