The economic hardships Americans have endured recently taught us to be smarter shoppers – to shop around for the best bang for our buck. Apparently, this is true even when it comes to shopping for credit cards. Consumers don’t want just any credit card; according to a recent study by comScore of one million U.S. consumers and a survey of 2,000 U.S. internet users, most credit card shoppers are searching for credit cards with low interest rates or no annual fees.
Revival of Economic Optimism
The report recently released by comScore found Americans are making more money and are subsequently spending more. With an increase in job opportunities and income, consumers feel more secure with their own financial situation and the overall economy. This was evidenced in the report, as it found 34% of consumers were more confident in the economy. Most likely consumers feel they have more of a grasp on their debt, as they are better able to pay their monthly credit card bills on time. With this comes an increased optimism in the economy and an eagerness to get back out into the shopping world and make purchases.
Consumer Shopping List
Though consumers are interested in buying new hybrid cars or even vacations, they are also interested in new credit cards. According to comScore’s report, 20% of consumers shopped around for a new credit card in the past year. This percentage jumps to 23% for consumers with outstanding balances. And what exactly do they look for in a credit card? 40% of consumers were interested in a credit card with lower interest rates in order to save money on their credit card debt. This is no surprise, considering that there are many 0 balance transfer offers on the credit card market right now. But for 28% of consumers, having no annual fee was at the top of their shopping list for a new credit card. Rewards programs ranked third on the list of priorities for shoppers at 16%.
Credit Card Outlook
Shopping around for a credit card could be a step in the right direction for many. It could potentially save many consumers substantial money on interest rates, and allow others to say goodbye to annual fees. But consumers should still be mindful in their spending habits. They should take advantage of any money saved on interest rates and other fees by continuing to be smart shoppers and making purchases they can pay off, rather than racking up more unnecessary debt.