Are We Seeing a Decrease in the Types of Credit Cards?

Believe it or not, consumers could be seeing a decrease in the types of credit cards that are available to them. As things start to take shape with the CARD Act deadline approaching early next year, we have already seen a dramatic change with issuers and the credit cards that they offer. As we move even closer, many experts believe that the types of credit cards will decrease and eventually fall under two categories. One being a no fee, no rewards card offered to the majority of consumers and the other, a rewards card with annual fees marketed toward a select few.

In recent months, banks including Bank of America, Citi and Chase all have made major changes to their card offers. The most notable changes made were the switching of fixed rates cards to variable rates, and the addition of annual fees to many cards that had none. For many older cardholders, these changes feel like that of the early credit card era when plastic was accompanied with not only annual fees but also high double digit interest rates.

Only time will tell what all changes will be made, but one can only have the feeling that credit cards will continue to change even well after the CARD Act is fully implemented. Although it may not be seen as the best interest of the consumer, credit cards issuers will have to continue to change its card offerings in order to stay in business.