The recent US recession has undoubtedly given a huge blow on the economy of most of the countries in the world. However, this year has reported to take a spin from the said economic fallback. The credit card companies, one of the industries which severely suffered from the recession crisis, are again starting to bounce back into action.
Rewards and Benefits
In Scotland and England, two local banks are joining the English citizens to celebrate their recent economic turnaround by offering an innovative credit card that offers zero percent interest rate. This new offer caters new cardholders on transfer balances. Cardholders are expected to enjoy a 16-month interest free privilege. Added to this is a zero percent interest rate on all expenditures during the first three months. But the credit card companies will not remain relaxed in offering zero percent rates. Banks will still ensure the qualifications and credit ratings of an individual vying for a credit card account to avoid high delinquency ratings.
Meanwhile, credit card industries and other equivalent establishments are working hand in hand to provide additional benefits to consumers. Some of the best rated credit cards are now offering reward benefits to those driving on the roads at a high distance vehicle. Cardholders who have a good credit record will benefit most from these rewards. PenFed Visa Platinum Gas/Cash Rewards Card, which requires a high credit card limit, offers cash back when paying at the pump. An average card limit can fit in to American Express/Costco where one can earn 3 percent upon purchasing $3,000 worth of gas. Apart from the aforementioned credit card companies, partner establishments still have the option to offer their own brand of card. Consumers are advised to check for the terms and conditions given by the company.
Low Delinquency Rates
Another sign that the credit card industry has bounced back into the game is the recent trend on low delinquency rates. Top credit card companies like JPMorgan Chase & Co.(JPM), Bank of America Corp. (BAC), Capital One Financial Corp. (COF), Citigroup Inc. (C), Discover Financial Services (DFS), and American Express Co. (AXP) have reported the slowing down in delinquency rates. American Express is accounted for the lowest rate in delinquent cards with 3.1 percent of the company's cardholders dated past due for 30 days or more.
Delinquency rates remain to be a hallmark in the industry because they are indicators of future credit card defaults.
Although promotions in interest rates and other benefits see a potential increase in cardholders' spending, analysts still believe that credit availability is essential to a healthy economy.