Are we witnessing the beginning of a card free... - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Are we witnessing the beginning of a card free revolution

Are we witnessing the beginning of a card free revolution

Are we witnessing the beginning of a card free revolution
The content is accurate at the time of publication and is subject to change.

Can you believe that there are 8 million people who have said no to credit cards and put them away for good? The number of people who do not own a credit card has risen to 78 million from just 70 million about a year ago. In just a span of one year, over eight million people have shredded their credit cards, and are making a conscious effort to reduce and eliminate their debts. Some of them have also given up their credit card, wary of the ever increasing fees associated with them.


In the third quarter of the current financial year, credit card debt in the United States dropped by 11%, compared to the same time last year. Many financial analysts are calling this an “unprecedented” move, since people always seek out more credit cards as compared to shunning them. This can be termed as a side effect of the economic downturn that shook up the mindset of people. Consumers are now focused on building a nest egg for tough financial times as compared to taking risks with credit cards.


However, TransUnion, one of the three credit bureaus, said that the increase in the number of people without credit cards cannot be completely attributed to high fees and public outrage. With the CARD Act coming into play, credit card lenders lost their freedom in hiking the fees and interest rates as and when they deemed fit. Hence, the banks wrote off a number of accounts that they thought were not worth holding on to. While the consumers are staying away from risk by saving up for tomorrow, banks are also playing their part by eliminating high-risk cardholders.


With the banks tightening their rules governing credit cards, newer players are entering the market in order to launch newer products. The prepaid credit card by the Kardashian sisters is just one such example. The Prepaid card launched by these three sisters has already irked up innumerable consumers because of the exorbitant and ridiculous fees associated with them. These “predatory” credit cards are on the verge of being removed from the market after Richard Blumenthal, an Attorney General from Connecticut, raised concerns about the pernicious fees on these prepaid credit cards.


For individuals who thought that the credit card free revolution has begun, here is some news. The credit card market is all set to double over the next 24 months. This is the calm before the storm.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Discover Debit Card Gets an Upgrade

Posted: August 21, 2018

Discover is rolling out a new version of their debit card, offering several new features, including Freeze It, which may be familiar to their credit card customers. It lets cardholders turn their card on and off if it's lost or stolen. Continue reading
Discover Cuts Price Protection Benefits from Credit Cards

Posted: August 20, 2018

If you have a Discover card and like the Price Protection benefit that comes with it, you might want to take advantage of it sooner than later. Discover has decided to do away with this benefit. This benefit will no longer be part of your ... Continue reading
The New Citizens Bank Cash Back Plus World MasterCard

Posted: August 17, 2018

Citizens Bank has rolled out their new Cash Back Plus World MasterCard, offering cardholders 1.8% cash back when they go shopping. This is an upgraded version of their previous card. With this new version, cardholders can earn unlimited ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
0% Intro APR on Balance Transfers and Purchases for 18 months. After that, the variable APR will be 15.74% - 25.74% based on your creditworthiness
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!