Are we witnessing the beginning of a card free... - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Are we witnessing the beginning of a card free revolution

Are we witnessing the beginning of a card free revolution

Are we witnessing the beginning of a card free revolution

Can you believe that there are 8 million people who have said no to credit cards and put them away for good? The number of people who do not own a credit card has risen to 78 million from just 70 million about a year ago. In just a span of one year, over eight million people have shredded their credit cards, and are making a conscious effort to reduce and eliminate their debts. Some of them have also given up their credit card, wary of the ever increasing fees associated with them.


In the third quarter of the current financial year, credit card debt in the United States dropped by 11%, compared to the same time last year. Many financial analysts are calling this an “unprecedented” move, since people always seek out more credit cards as compared to shunning them. This can be termed as a side effect of the economic downturn that shook up the mindset of people. Consumers are now focused on building a nest egg for tough financial times as compared to taking risks with credit cards.


However, TransUnion, one of the three credit bureaus, said that the increase in the number of people without credit cards cannot be completely attributed to high fees and public outrage. With the CARD Act coming into play, credit card lenders lost their freedom in hiking the fees and interest rates as and when they deemed fit. Hence, the banks wrote off a number of accounts that they thought were not worth holding on to. While the consumers are staying away from risk by saving up for tomorrow, banks are also playing their part by eliminating high-risk cardholders.


With the banks tightening their rules governing credit cards, newer players are entering the market in order to launch newer products. The prepaid credit card by the Kardashian sisters is just one such example. The Prepaid card launched by these three sisters has already irked up innumerable consumers because of the exorbitant and ridiculous fees associated with them. These “predatory” credit cards are on the verge of being removed from the market after Richard Blumenthal, an Attorney General from Connecticut, raised concerns about the pernicious fees on these prepaid credit cards.


For individuals who thought that the credit card free revolution has begun, here is some news. The credit card market is all set to double over the next 24 months. This is the calm before the storm.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Identity Fraud is Up

Posted: February 22, 2018

Last year identity fraud hit a record high, according to the 2018 Identity Fraud Study released by Javelin Strategy & Research. This brings the total number of identity fraud victims in the U.S. to 16.7 million, representing an 8% upswing. ... Continue reading
Traveling More and Taking Shorter Trips in 2018

Posted: February 21, 2018

Heading out for a quick getaway or extended trip to de-stress is trending with travelers, according to Visa's Global Travel Intentions (GTI) Study. They also discovered that taking shorter trips and traveling more often is in the cards for ... Continue reading
Travel and Dinning Out is Trending on Valentine’s Day

Posted: February 15, 2018

If you are planning to take your lover out for a night on the town or on a whirlwind trip for Valentine's Day, you are not alone. According to the new MasterCard Love Index findings, this type of emotion fueled spending is outpacing other ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit