Find the best credit cards and credit card offers on the web
  CREDIT CARD BLOG
HOME

CARDS BY CATEGORY

Special Credit
Card Deals
0% Balance Transfer & Purchase Low Interest
Credit Cards
Business Credit Cards Reward Credit Cards Instant Approval
Cards
Student Credit Cards Customizable Credit Cards Prepaid Cards Gift Cards

CARDS BY
CREDIT RATING

Cards For People
With Good Credit
Cards For People
With Fair Credit
Cards For People With Bad Credit Cards For People With No Credit History

CARDS BY
BANK OR ISSUER

American Express® Capital One® Chase Citi® Cards Discover® Cards HSBC Cards First PREMIER® Bank PartnersFirst MasterCard® Visa® More U.S. Banks Canadian Cards U.K. Credit Cards Australian Cards Belgium Cards Norwegian Cards

OTHER RESOURCES

Credit Card Comparison Guide Credit Card
Search Tools
Credit Reports and Monitoring Credit Card News/ Information "Charge-it" Credit Card Blog

RSS Feed RSS Feed RSS Feed
RSS Feed RSS Feed
RSS Feed RSS Feed


What is the Future of Credit Card Issuers?

With all the changes that have occurred within the last year, consumers are fed up with their issuers and many have vowed to never use a credit card again. In turn, many consumers are now using debit cards to pay for their products and services, as well as have switched to saving more money as opposed to spending it. For this reason, many experts have concluded that card issuers will see hard times for what could be years to come.

 

At the moment there are a couple of things that should have issuers worrying. The first, which has an immediate effect is the current level of unemployment. As far as analysts are concerned, unemployment has one of the most direct influences on the profit or losses for issuers. History has shown that late payments have risen dramatically in times with high unemployment rates and this time is no exception. The second factor effecting issuers is the implementation date of the Credit Card Accountability, Responsibility and Disclosure Act, which was signed in May. The date which is in early February is quickly approaching and issuers, for the time being, are still scrambling to find ways to make up revenue that will be lost. This is mainly due to the fact that the CARD Act requires promotional rates to remain in effect for at least six months, limits the ability for issuers to raise interest rates on existing balances and restricts fees for sub-prime cards among other things.

 

With so many things going against credit card issuers at the moment, what do you think the future is for issuers? For many including myself, it doesn’t seem that issuers will return to where they were for some time to come. With cardholders now receiving annual fees (where they didn’t before), interest rates at and above 30 percent, increased fees and lower credit limits, it doesn’t seem that the credit card issuers are trying to help themselves. Card companies instead are isolating themselves from the very consumers that relatively kept them in business throughout the years.

Share this on:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • StumbleUpon
  • LinkedIn
  • Sphinn
  • Technorati
  • TwitThis
  • Tipd
  • MySpace

No Comments »

No comments yet.

RSS feed for comments on this post. TrackBack URL

Leave a comment



| Best Credit Card Offers With Online Applications | 0% APR Balance Transfer | Cash Back Cards |
| Low Interest Cards | Airline Miles & Travel Reward Credit Cards | Business Credit Cards |
| Gas Rebate Credit Cards | Car Rebate Credit Cards | Instant Approval Cards |
| Establish Credit, Credit Cards | Student Credit Cards | Prepaid Cards |