Charge card mail offers have increased

Credit card mail is making a comeback, and economists see this as good news for the economy. Bankrate states that the customer credit industry has experienced a kind of renaissance when it comes to charge card mail offers. Witness the numbers: from Q4 2009 to Q4 2010, charge card mail offers climbed from 551 million to 1.4 billion, states Mintel Comperemedia. Article source – Recovery Watch: Credit card mail has increased dramatically by MoneyBlogNewz.

Making the credit offers shine

To be able to attract consumer business, more credit card offers are trumpeting no balance transfer fees, no foreign transaction fees and extended low introductory rates. Waiving balance transfer charges is particularly popular. Banks will go to extreme lengths just to get above the rest according to what Senior Vice President Andrew Davidson of Mintel told CreidtCards.com. Last year, a study showed that around 40 banks offering credit completely cancelled their transfer fees, and those who did keep them only kept the fee around 3.06%.

Standing out above the crowd

Another area where charge card issuers compete for business is the foreign transaction (aka currency conversion fee) arena. Transfer charges and Annual Percentage Rate fees are above important for any person who travels for business purposes or for pleasure. The typical 3 percent surcharge on foreign transactions can cost quite a bit before the trip is over. Last year a study conducted showed that over 90 percent of bank cards include this type of fee.

Now several large banks are waiving those transaction fees, such as Citibank, HSBC, and Chase.

Extended introductory rates: another bonus

Some credit card issuers push a zero-percent Annual Percentage Rate initially for some time, to try and get individuals to purchase into their card, this is known as an extended introductory rate.

The teaser rate offered by credit card typically exceeded 13 months in the fourth quarter of 2010, states Mintel. According to Davidson, that number is expected to grow.

“The squeeze on credit observed during mid-2009 is being reversed, and many issuers are now offering durations of 15, 17 or 18 months or more,” he told Bankrate. “We have even seen offers with 24- and 30-month intro rate durations in recent months.”

Legislation keeps charge card rates low

The Credit Card Accountability, Responsibility and Disclosure Act (CARD) have helped stabilize charge card APRs. The mean for 2010’s fourth quarter was 14.03 percent, according to Mintel. “Many credit card companies have contrasted their APRs against the relatively high prime rate as a consumer draw,” said Davidson.

Information from

Bankrate

bankrate.com/financing/credit-cards/4-trends-in-credit-card-mail/

CreditCards.com

creditcards.com/credit-card-news/foreign-exchange-fees-going-up-1267.php

Pew Trusts

pewtrusts.org/uploadedFiles/wwwpewtrustsorg/Reports/Credit_Cards/PEW-CreditCard FINAL.PDF

WhiteHouse.gov

whitehouse.gov/the_press_office/Fact-Sheet-Reforms-to-Protect-American-Credit-Card-Holders/

Shop around for a better credit card than this

youtu.be/FunpS4QXcRI