Credit Card News
Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many 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. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Credit card issuers out to regain clientele

Credit card issuers out to regain clientele

Add to Favorites:
Credit card issuers out to regain clientele

Due to the global economic recession credit cardcompanies now feel the need to raise their fees and interest rates, according to financial consultant Doug Nicholas, he argues that credit card issuers are adapting to changing times in order to stay in business.

Credit card companies now capitalize on their best deals or offers given that the economic recession has already deprived them of potential clientele. Moreover, the companies now need to recoup resources from the high risk investments which apparently turned out to be low in returns since the onset of the economic downturn.

Because credit card companies know that they benefit the most from high credit spenders who still manage to keep good credit scores despite changing economic conditions, the industry is now out to attract more of these potential cardholders for mutual growth and development.

Nicholas asserts that it is important at this point for credit card companies to highlight how their customers will benefit with their particular credit card offers and deals. Nicholas adds that currently, companies are yet to do substantial efforts to show transparency.

He said that such an effort includes dispelling misconceptions on abrupt interest rate increases or arbitrary additional fee introduction to credit card accounts.

He says further that now, we have seen several credit card companies prioritizing transparency in the way they market their deals. Nicholas believes that this is a way of responding to mounting pressures by different groups and organizations for credit card issuers to make information on fee changes immediately public whenever they arise.

Nicholas says that another thing which the credit card issuers are now doing is to entice more and more of their credit cardholders – and future customers – to use their cards more often. This is indeed good for companies who want to maximize profit. The incentive for the cardholders, on the other hand, is to spend at a maximum in order to benefit from a rewards system that give them discounts and other benefits.

Nicholas says that credit card companies understand very well that the more purchases their cardholders make with their credit cards, the more profit for the companies.

Finally Nicholas states that because the companies refuse to take back increased fees and interest rates, they entice their client with rewards points, benefits and discounts.

Add to Favorites:

Related News:

Fifth Third Bancorp Upgrades App

By Dar Dowling, Posted: January 20, 2017

Fifth Third Bancorp has upped the ante when it comes to their mobile app, in terms of how many ways users can pay for merchandise – now letting them make payments with all of the available payment platforms. Continue reading
New Credit Card by Amazon and Chase

By Dar Dowling, Posted: January 19, 2017, Inc. and Chase have joined together to roll out the new Amazon Prime Rewards Visa Signature Card offering 5% back on all purchases. Continue reading
Wix and Square Team Up to Make Payments Easier

By Dar Dowling, Posted: January 18, 2017

Wix, a cloud-based web development platform letting people set up a wide range of websites, is teaming up with Square to provide merchants and entrepreneurs a new method of taking payments for products and services bought online and in ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
You could turn $200 into $400 with Cashback Match™. We’ll automatically match all the cash back you earn at the end of your first year. New cardmembers only.
For Excellent, Good Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit