Compare your credit cards now - things are a changing
You may know that credit cards were first dreamt up in a sci-fi novel back in the late 19th century. The novel was called 'Looking Backwards', the author was Edward Bellamy, and the term credit card was used 11 times. Perhaps because of this, the credit card industry has always been fairly inventive. This inventiveness can be seen more clearly now than at any time in recent years. With the credit crunch has come economic change and with change comes more change. It may be worth having a look again at the market to compare your credit card against what is available now - there may be some great offers that you are missing out on.
The reason things are changing is inescapable. The credit crunch is making consumers more worried about their financial situation and how they spend their money. As such you are probably less inclined to change cards, to rack up more debt, and are likely to be using your cards less. This is a problem for the credit card companies that want to you to use your card and make them profit as interest and yet pay off the debt each month so they are left in the black. Credit card companies want the best customers that they can find in this time of crisis, reliable customers, and at the same time get people to repay the money they owe.
There are signs that this may be the case - of course it could just be wishful thinking but you should remain optimistic. One of these is that balance transfer fees are in some instance being dropped. This is strange. Because people are getting worried about their financial situation, especially any debt they may have, banks are saying 'hey look at us, transfer your existing balance for free and pay it off for free'. There are two things going on here 1) people are stopping using and transferring their cards as much and the credit companies are losing out and 2) people want to pay off there cards and therefore find this deal attractive generally. It is odd because when introduced in 2004, transfer fees were designed to stop people from making serial transfers and getting away with the free pay offs.
Another type of card that has appeared is the sliding interest rate card. Once again this is working due to the same stresses, strains and undercurrents as the fee balance transfer cards. You may well want to compare your credit card with this because it is actually quite good. This card works by charging you a lower interest if you make larger repayments each month. Once more it is effectively helping you to pay off you existing balance. Bizarre! But once again this type of card is going to appeal in the present time and therefore, the company hopes, will drum up more business.
Other ways that a new card may help financially could be manifold. You could find that you are being charged interest each month and this means you are not making much of dent in your balance. If this is the case you may want to compare your card against the many 0% balance transfer offers available, so you can help yourself out. You could find that a shopping chain that you regularly use has introduced a credit card that could save you money or earn you points. You could even find that your favourite charity or football team have introduced a card that you might consider.
So things have hit the fan and cards are changing. Credit companies are attracting customers by making it cheaper to make repayments or blatantly encouraging rapid repayment. Hopefully more credit cards of this type will be developed and more and more companies will introduce their own versions. These cards are good as they are excellent for both the consumer and the credit company. Even if you don't fancy a change right now it may be good to compare your credit card in a couple of months. Even though the future looks bleak on one level, who knows what good may come of it?
The reason things are changing is inescapable. The credit crunch is making consumers more worried about their financial situation and how they spend their money. As such you are probably less inclined to change cards, to rack up more debt, and are likely to be using your cards less. This is a problem for the credit card companies that want to you to use your card and make them profit as interest and yet pay off the debt each month so they are left in the black. Credit card companies want the best customers that they can find in this time of crisis, reliable customers, and at the same time get people to repay the money they owe.
There are signs that this may be the case - of course it could just be wishful thinking but you should remain optimistic. One of these is that balance transfer fees are in some instance being dropped. This is strange. Because people are getting worried about their financial situation, especially any debt they may have, banks are saying 'hey look at us, transfer your existing balance for free and pay it off for free'. There are two things going on here 1) people are stopping using and transferring their cards as much and the credit companies are losing out and 2) people want to pay off there cards and therefore find this deal attractive generally. It is odd because when introduced in 2004, transfer fees were designed to stop people from making serial transfers and getting away with the free pay offs.
Another type of card that has appeared is the sliding interest rate card. Once again this is working due to the same stresses, strains and undercurrents as the fee balance transfer cards. You may well want to compare your credit card with this because it is actually quite good. This card works by charging you a lower interest if you make larger repayments each month. Once more it is effectively helping you to pay off you existing balance. Bizarre! But once again this type of card is going to appeal in the present time and therefore, the company hopes, will drum up more business.
Other ways that a new card may help financially could be manifold. You could find that you are being charged interest each month and this means you are not making much of dent in your balance. If this is the case you may want to compare your card against the many 0% balance transfer offers available, so you can help yourself out. You could find that a shopping chain that you regularly use has introduced a credit card that could save you money or earn you points. You could even find that your favourite charity or football team have introduced a card that you might consider.
So things have hit the fan and cards are changing. Credit companies are attracting customers by making it cheaper to make repayments or blatantly encouraging rapid repayment. Hopefully more credit cards of this type will be developed and more and more companies will introduce their own versions. These cards are good as they are excellent for both the consumer and the credit company. Even if you don't fancy a change right now it may be good to compare your credit card in a couple of months. Even though the future looks bleak on one level, who knows what good may come of it?
About the Author:
Jason Moore is an experienced financial author who writes for various popular websites mainly in the financial industry. Learn more here about the UK Card and Compare credit card.
posted by Credit Counseling at
10:46 AM
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