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Strategies to lure new customers used by credit card lenders

2011-02-09

The credit card industry is highly competitive today with a number of players in the market looking to increase their customer base, and is leveraging various strategies to make sure they get new customers. To add to their concerns, the credit card reform act, which has recently come into existence, has limited a lot in terms of revenues for them. Hence, the banks are bending over backwards to increase their customer database to make up for the loss in revenue. This, to a certain extent, works in the favor of customers, especially the ones who have a good credit score to back them up.

Banks are willing to offer favorable interest rates to these customers, in order to ensure they sign up with them. Customers with a poor score can also benefit from the promotional offers being rolled out by the banks. One of the favorite strategies adopted by the banks is the interest free offer which enables the customers to make purchases on the card or opt for balance transfer without having to pay any interest. Though, this offer is only for a limited period, customers stand to gain, and save significantly if they use this offer wisely.

Offering cash back on purchases made, is another strategy that most banks are willing to adopt. This ensures customers don’t think twice about paying for purchases with their cards, and then get some cash credited back to their account. Offering travel rewards and hotel discounts are some of the other strategies that seem to be working in the favor of credit card lenders.