Credit cards have been widely popular and continue to remain a much coveted accessory by both consumers and banks. It is a highly profitable service for banks and it is always in demand by the consumers. Despite the credit card act of 2009, the service remains much sought after and here are results of surveys of popular credit cards in the market.
How a credit card works is simple, clients with credit cards can buy goods and services on credit and pay the amount that adds up later on. There is no need to have bulk cash on hand at all times and it is possible to complete the payments in full or in installments within a stipulated date. Thus no interest charge is there on the amount charged to the card.
While surveying popular cards in the market it was found that Bank of America has the lowest interest rates in offer. The rate of interest was 10.99 percent for the BankAmerica Visa card. It was noticed that on cards with cash back offers the interest rates tend to be higher. On reward cards as well, there were higher interest rates.
Rewards and Points
There are certain credit card companies that specifically focus on rewards and points. They will have numerous benefits for the users like gift certificates, miles on airlines, gift coupons for specific stores, deals on shopping with certain brands, Dinner coupons and much more. Many popular retail brands like Kmart, Target, Barns and Noble have tie ups with credit card companies in these reward programs. Some credit cards will also have a cash back offer which is also advantageous.
Visa has announced that there has been a notable rise in consumer spending. With the economy picking up, consumers are more willing to spend and are back to using their credit cards as the incomes are back to being stable. The fiscal results for the second quarter of 2010 put the GAAP income as $713 million in the figures released last week. There has been a 14% increase from the levels seen last year and consumers are back to spending and using their visa card as shown by the figures in sales for the last four months. This indicates economic stability and a continual growth and brighter future for visa credit cards and the market as a whole as well. Credit cards remain a popular economic resource when used wisely.