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Credit Card Applications » News » Other » Credit Card Industry Bounces Back

Credit Card Industry Bounces Back

July 30, 2010 | Updated on July 30, 2010
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This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Citi.

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.

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.
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