Credit card issuers have done a lot of things in response to the economic recession. Things they did included raising interest rates of credit card holders, justifying more interchange fees from merchandisers and many others.
The credit card issuers and banks only want to protect their business in a time when the consumers are shunning their credit cards in favor of cash and debit cards. With a lot of issues arising to date about how the credit card companies and banks place holders or consumers at risk, along with how they affect the merchandisers, raising profit becomes an important goal to achieve.
A lot of other studies have also been made available on the internet about what banks face in the future whether they will survive or not at all. Aside from this, points to always remember about the interchange fees that merchandisers are complaining about also abound on the internet. Most of all, the consumers or credit card holders are the ones for which most literature had been directed. With questions about what the whole credit card debate implies for the American using plastic, here are some things that Kimberly Palmer of the IndexCards agency suggests (IndexCards agency analyzes research on credits):
1) Contrary to the trend, keeping more than one credit card still makes sense. Although this can be easily seen as risky, Palmer says that having more than one card provides security for the consumer. Whenever a holder had his or her account closed in the first bank that issued the credit card, there will be a fall back.
The importance of this is that important purchases can still be made especially during emergencies and times when charges to our credit by the banks become too high.
2) The purchases you make using a single card can accumulate much rewards which are not worth your spending. Palmer stresses the fact that the rewards a credit card holder gets when he or she makes a lot purchase using the plastic are often outweighed by the accompanying fees, charges, and interest rates.
Palmer stresses at this point that judgment of an individual becomes necessary in looking at whether or not he or she is in a fair deal. This could be measured by looking at whether or not the banks lend money that later becomes impossible to pay or money that also gets lost along the way.
Palmer says that in the end, owning more than one credit card still remains as a decision that consumers must weigh.