Credit card issuers out to regain clientele - 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 » Credit card issuers out to regain clientele

Credit card issuers out to regain clientele

Credit card issuers out to regain clientele
The content is accurate at the time of publication and is subject to change.

Due to the global economic recession credit cardcompanies now feel the need to raise their fees and interest rates, according to financial consultant Doug Nicholas, he argues that credit card issuers are adapting to changing times in order to stay in business.

Credit card companies now capitalize on their best deals or offers given that the economic recession has already deprived them of potential clientele. Moreover, the companies now need to recoup resources from the high risk investments which apparently turned out to be low in returns since the onset of the economic downturn.

Because credit card companies know that they benefit the most from high credit spenders who still manage to keep good credit scores despite changing economic conditions, the industry is now out to attract more of these potential cardholders for mutual growth and development.

Nicholas asserts that it is important at this point for credit card companies to highlight how their customers will benefit with their particular credit card offers and deals. Nicholas adds that currently, companies are yet to do substantial efforts to show transparency.

He said that such an effort includes dispelling misconceptions on abrupt interest rate increases or arbitrary additional fee introduction to credit card accounts.

He says further that now, we have seen several credit card companies prioritizing transparency in the way they market their deals. Nicholas believes that this is a way of responding to mounting pressures by different groups and organizations for credit card issuers to make information on fee changes immediately public whenever they arise.

Nicholas says that another thing which the credit card issuers are now doing is to entice more and more of their credit cardholders – and future customers – to use their cards more often. This is indeed good for companies who want to maximize profit. The incentive for the cardholders, on the other hand, is to spend at a maximum in order to benefit from a rewards system that give them discounts and other benefits.

Nicholas says that credit card companies understand very well that the more purchases their cardholders make with their credit cards, the more profit for the companies.

Finally Nicholas states that because the companies refuse to take back increased fees and interest rates, they entice their client with rewards points, benefits and discounts.

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:

Brand New Categories for Chase Freedom Cardholders

Posted: September 20, 2018

Chase Freedom Cardholders have new categories to choose from this fall and just in time for the holiday season too. They will be able to earn 5% cash back when shopping at Wholesale Clubs, like Sam's Club and Costco, as well as Department ... Continue reading
Chase Sapphire cardholders can earn 60,000 extra Points

Posted: September 19, 2018

Bonus points can be a great way to get a head start on that trip you've been eyeing and now people with the Chase Sapphire credit card will be able to get there sooner if they sign up for a new Sapphire bank account. Chase's new premium ... Continue reading
Get 20,000 points or $200 With Amex Offers for Business

Posted: September 18, 2018

Do you have an American Express business credit card? Are you thinking about spending some money with AT&T Wireless for Business? If the answer is yes to these questions you may want to check out your Amex Offers account to see if you are ... 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. That's $600 towards travel!
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!