“Just got your degree? Congratulations! Now’s the time to follow that smart move with another and take a few minutes to learn how to build a good credit profile, says Consumer Reports.”
Tag: credit cards
According to a new survey released by the National Retail Federation, the majority of U.S. consumers ÛÓ 62% ÛÓ believe new credit cards being issued by banks donÛªt go far enough to protect card data or prevent fraud. Most say a PIN would protect data better than a signature.
There may be no better indication of the health of the economy than the attitudes of consumers and institutions regarding debt. During the recession, consumers were frantically paying down debt and institutions showed little interest in extending credit. All that is about to change this year.
One sign of the improving economy may be the revived consumer willingness to sign up for new credit cards. Over the past 12 months, nearly 20% of existing credit card consumers started shopping for a new card. comScore, which just released a new study on this topic, says the growth in demand for more credit cards will continue this year.
One sure sign of economic recovery is consumer willingness to use debt once again. Consumers started increasing their levels of debt as of last December. This new attitude means that credit card marketers are likely to boost their promotions in 2011.
Overuse of credit cards is frequently cited as one of the contributing factors for the economic turmoil many consumers find themselves experiencing. Overall, consumers are cutting their reliance on revolving debt. But the U.S. economy still runs on largely on credit and J.D. Power and Associates 2010 U.S. Credit Card Satisfaction StudySM reveals that consumers perceive these companies as ‘financially stable’ and ‘reliable.’
The credit card industry is recovering from serious challenges encountered in the past few years. Too many consumers loaded up on debt before the recession and many are now either working out payment plans or they filed for bankruptcy and need a fresh financial start. At the same time, the federal government passed sweeping financial reforms designed to prevent credit card companies and consumers from contributing to another economic bubble. These factors mean credit card companies will be marketing to key demographic groups to find new customers.
After experiencing a year of significant shocks to their systems, credit card operators are poised to once again increase spending. In 2009, the industry has been plagued by bad press surrounding high interest rates which coincided with a time of overwhelming personal indebtedness and rising unemployment across the country. But credit card companies ranging from American Express to Chase have increased their mailing significantly in the past month, according to Mintel CompereMedia.