Why you should compare your credit card on a regular basis
You may know that credit cards were first dreamt up in a sci-fi novel back in the late 19th century. The novel was called 'Looking Backwards', the author was Edward Bellamy, and the term credit card was used 11 times. Perhaps because of this, the credit card industry has always been fairly inventive. This inventiveness can be seen more clearly now than at any time in recent years. With the credit crunch has come economic change and with change comes more change. It may be worth having a look again at the market to compare your credit card against what is available now - there may be some great offers that you are missing out on.
There is a well known Chinese curse that runs 'may you live in interesting times' and economically the current times, right here, right now, are very, very interesting. Drastic measures will be taken, but from this there could be some truly spectacular deals coming to the surface. It could be time to compare your credit card with others on the market because you may be in for a pleasant surprise. There are some great new deals appearing that have evolved purely because of, and in response to, the economic instability. It can be good to apply evolutionary theory to the market and ask, has or will a new type of card evolve?
As an example there is currently a card being offering with a variable interest rate. The rate is dependant upon how much you pay off each month; low repayment equals higher rates. This is great because in a market where so many credit providers are withdrawing, and cutting losses, this company is actually encouraging pay back. Great for consumers and great for the card company because everyone wants their card. The economic climate seems to have caused the development of a card that works in harmony with the times, not encouraging more debt in a tough period. Obviously the companies aren't as altruistic as all that but it works. Whereas other companies could be crashing and burning due to their customers having too much debt and being unable to meet repayment, this company is helping customers and making money themselves.
Another type of card that has appeared is the sliding interest rate card. Once again this is working due to the same stresses, strains and undercurrents as the fee balance transfer cards. You may well want to compare your credit card with this because it is actually quite good. This card works by charging you a lower interest if you make larger repayments each month. Once more it is effectively helping you to pay off you existing balance. Bizarre! But once again this type of card is going to appeal in the present time and therefore, the company hopes, will drum up more business.
Of course there is a flip side to all of this that must be mentioned, albeit briefly. Credit cards are becoming slightly more difficult to get approval for. Credit checks are becoming stricter. Also some companies have slashed their customer's credit limits and put up some of their charges, for example charges for usage abroad and cash machine usage. Basically the companies are scared; they are torn between making a profit by getting more customers and cutting their loses. They want all of the best customers and none of the weaker ones. It is possible that one company may become an ark for all of the strong credited whereas other companies crumble and get washed away.
In 2006 133.2 billion was spent on credit and charge cards; this is a phenomenal amount, so there is no doubt that credit cards are here to stay and a major part of everyday financial reality. Because it is such a huge industry, new cards are introduced each year to compete with each other and to reflect the needs of the current economic climate. As it is so fast moving it is worth comparing your credit card with others on the market because you never know when the perfect credit card may come along.
There is a well known Chinese curse that runs 'may you live in interesting times' and economically the current times, right here, right now, are very, very interesting. Drastic measures will be taken, but from this there could be some truly spectacular deals coming to the surface. It could be time to compare your credit card with others on the market because you may be in for a pleasant surprise. There are some great new deals appearing that have evolved purely because of, and in response to, the economic instability. It can be good to apply evolutionary theory to the market and ask, has or will a new type of card evolve?
As an example there is currently a card being offering with a variable interest rate. The rate is dependant upon how much you pay off each month; low repayment equals higher rates. This is great because in a market where so many credit providers are withdrawing, and cutting losses, this company is actually encouraging pay back. Great for consumers and great for the card company because everyone wants their card. The economic climate seems to have caused the development of a card that works in harmony with the times, not encouraging more debt in a tough period. Obviously the companies aren't as altruistic as all that but it works. Whereas other companies could be crashing and burning due to their customers having too much debt and being unable to meet repayment, this company is helping customers and making money themselves.
Another type of card that has appeared is the sliding interest rate card. Once again this is working due to the same stresses, strains and undercurrents as the fee balance transfer cards. You may well want to compare your credit card with this because it is actually quite good. This card works by charging you a lower interest if you make larger repayments each month. Once more it is effectively helping you to pay off you existing balance. Bizarre! But once again this type of card is going to appeal in the present time and therefore, the company hopes, will drum up more business.
Of course there is a flip side to all of this that must be mentioned, albeit briefly. Credit cards are becoming slightly more difficult to get approval for. Credit checks are becoming stricter. Also some companies have slashed their customer's credit limits and put up some of their charges, for example charges for usage abroad and cash machine usage. Basically the companies are scared; they are torn between making a profit by getting more customers and cutting their loses. They want all of the best customers and none of the weaker ones. It is possible that one company may become an ark for all of the strong credited whereas other companies crumble and get washed away.
In 2006 133.2 billion was spent on credit and charge cards; this is a phenomenal amount, so there is no doubt that credit cards are here to stay and a major part of everyday financial reality. Because it is such a huge industry, new cards are introduced each year to compete with each other and to reflect the needs of the current economic climate. As it is so fast moving it is worth comparing your credit card with others on the market because you never know when the perfect credit card may come along.
About the Author:
Jason Moore is an experienced financial author who writes for various popular websites mainly in the financial industry. Learn more here about the UK Card and Compare credit card.
posted by Debt Consolidation Loan at
11:20 AM
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