Another research conducted by a credit card comparison site called CardHub discovered that this year, customers will continue to use their credit cards as many of them are finding it difficult to take out loans. The report also showed that Americans have an accumulated $48 billion new credit card debt in 2011 alone – that’s more than 400% the amount customers charged in 2010. The good news is that a majority of outstanding rose only by $4 billion, with most of it coming from payment defaults. The report shows that credit defaults are relatively insignificant and the new debt added last year have a good chance of getting repaid. As such, the increasing demand for credit services is clear indication that the credit industry is on the rebound.
In an interview Greg McBride, financial analyst for a leading credit card website said that many credit card users have been writing off their bad debts in 2009 and 2012 in order to grow their businesses. Because of this, card issuers have denied some applications for credit cards. But as repayment increases, credit card companies are now more willing to expand their reach.
At present, many companies are now offering mobile payment and online ventures. For example, Visa Inc., the world’s largest payment processor has recently offered a digital wallet wherein customers can pay for their online purchases through a user name and password, instead of having to type in their credit card numbers. Through this feature, clients can protect their account, as well as be able to make purchases more conveniently. Visa hopes to develop their V.me service so that customers can make in-store purchases using their cell phones. Such a service is now being offered by MasterCard and MobileLime.
Five Star Equities, owner of CardHub, performs regular analysis of the credit industry in the hope of providing credit card companies information on growth opportunities, and areas with high potential for return. They produce independent researches in order to provide the most up-to-date information about the credit card industry. Five Star Equities has recently made the entire report discussed in this article public, and may be downloaded through their company website.
Read Also Related News
The way you pay for a purchase with your credit card may be very different in five years than it is now. That's because biometric cards - credit cards that scan your fingerprint to prevent fraud or theft - are forecast to flood the market...
Although more people are using mobile wallets and moving away from using cash or credit cards as their go-to payment method, consumers have still shied away from using virtual credit cards for the majority of their purchases. But companies...
If you’d like to donate more money to good causes, but you never seem to get around to setting up the donations, a new app will make it easier to be generous. The app, called Movements, lets users donate small amounts that come from...
You can pay your Macy’s card online using Macy’s online pay service. Just visit their official website and follow the prompt to create your online profile and add your Macy’s card to that profile. Also, consider CheckFree, a partnering payment service. You can also pay your Macy’s American Express...
At my local bank there was an advertisement that if one enrolls in Alaska airline credit card and spends $1000 in the first 3 months then a travel companion could fly free. Is this still in effect? Does it apply to international trips and 1st class? Does the flight need to be Alaska airlines/ Virgin airlines?
Currently, the Alaska Airlines credit card has the following offer: “Annual companion fare from $121 ($99, plus taxes and fees from $22) after you make $1,000 or more in purchases within the first 90 days of your account opening”. This benefit will qualify for a round-trip coach Companion Fare on Alaska...
I once had the US Airways credit card, then the airlines merged with American Airlines and my card transitioned into the AAdvantage MasterCard with a higher annual fee and without companion pass. I use the card one year and then closed it because I don’t fly with American Airline often. Now I am looking for a credit card without an annual fee. What are my options?
You may like one of the regular travel rewards credit cards offered by major banks. Travel rewards credit cards allow earning miles on all purchases. The cards also have one-time sign up bonuses which may be enough for a domestic flight. There are credit offers without annual fees, the other offers come with rather low...
I had the US Airways MasterCard back in 2013 but had to close it because I got divorced and had some troubles with keeping up with my credit cards fees. I’m back on track now and would like to apply for this card again but can’t seem to find it anywhere. Can you help?
The US Airways Premier World MasterCard is no longer offered. US Airways removed their credit card after merging with American Airlines. Today you can apply for one of the AAdvantage credit cards offered by Citi or for a regular travel rewards credit card. Both types of credit cards will allow you to earn miles and redeem...