Who Is Guaranteed Best Credit Card Terms Today?
According to changes in direct mail credit card application data, banks are wary of attracting new customers. In the shaky economic environment they prefer to keep their most valuable customers, rather than take on risk with someone looking to apply for credit card. A most likely reason a person may look for a new card now is loss of income and desperate need for bread and butter.
The luckiest are those who've maintained long term relationships with a bank and shown responsible credit management habits through years. These customers are eligible for guaranteed credit cards any time in the future, best card rates and deeper levels of engagement with their bank.
Meanwhile, these cardholders will be encouraged to spend more and more often, providing stable source of cash inflow for the issuers. From the risk standpoint, such approach certainly makes sense as the companies know their existing customers and their habits better than potential applicants and their vague purposes.
Trying to preserve existing cardholders, banks promise guaranteed approval credit cards, better, more personalized service and new conception of rewards. If you are a Capital One customer, for example, you may be offered more card options and new benefits, as well as additional services and card protections. Other big issuers consider awarding current customers for paying on time, in advance and more than the minimum required. This is expected to help both parties - banks can bring dawn the risk of defaults and cardholders can maximize rewards profits.
Guaranteed credit comes with a changed conception of card use, though. Instead of the earlier promoted motto "spend now and pay later", banks are encouraging their more troubled customers to resort to credit counseling or debt management plan. So, you are not neglected even if you once failed to make a payment and now need help catching up with good rating.
All this is done through retention mailing. Retention mailing aims at communicating with current customers, making them feel secure with the bank and unwilling to switch to another issuer's offer. If the cardholder feels cared about, as in case with less stable customers, and knows of guaranteed credit and financial well-being, he/she chooses to stay with the bank taking active interest in it.
In the banking sector instability, smaller banks disappear and those that are still standing come with best deals indeed. Assured of your creditworthiness and value for the bank, you can ask for a credit card best rate and get it lowered. Increase your chances by informing your lender of a better card offer coming in the mail from another major issuer. If you are building history with a bank, it will do its best to help you grow good rating and eligibility for guaranteed credit cards. Competitive rates, no fees on some cards, promotional offers, manageable credit lines and additional services (purchase protection, 0$ fraud liability and others) are among helpful tools to build up credit. All is done to keep you loyal in the current banking crisis instead of acquiring new risk through new applications online or by mail.