Are Credit Cards Competitive

When credit cards were first gaining popularity it was something that was thought of for the wealthy to use.  Now the feelings about credit cards have changed.  Almost every one in the country today has at least one credit card.  Most carry at least two to three or sometimes more in their purse or wallet. 

Credit card companies compete for your business.  They will advertise good deals in hopes that you will obtain a credit card from them and give them your business.  However the way that credit card companies are advertising these days have changed therefore the competitiveness has also changed.


The Internet has become a favorite place to advertise for many different companies and products.  This also holds true for credit cards.  Almost every home in the country has access to the Internet.  By using this technology it is possible to compare the different credit card offers that are available.

There has also been new technology that involves Internet only lenders, banks and credit card companies.  These types of financial institutions are causing havoc on the traditional financial companies and are creating many different types of competition.  The products that are offered through these different companies involves low interest rates as well as different options for the online accounts that have been created.  It also allows for the customer to manage all of their accounts online.

Competition Exists

Because of the growing Internet market the demand for new credit cards and new loans have increased which has allowed for the competition to increase as well.  Many of these Internet banks as well as the traditional banks are offering an interest rate of zero percent to just lure the consumers in.  Once they have signed their agreements the lender has one.  This is one of the reasons why the debt of the country is increasing at a rapid speed.

The Future Of Credit Cards

Some may wonder about the future of credit cards.  With the economy failing at an increased speed many believe that the credit card market will do the same.  However compared to the market of mortgages, housing prices stumbling, unemployment rate as well as many other the credit card business has seems to remain a constant.

Credit Care Offers

When looking for a new credit card you will find that there are many different credit card companies that are offering card with a time period of fifteen months or longer with no interest added on to the balance.  This is on all purchases and balance transfers from day one of receiving the credit card.  In the past the best deal that could be found was twelve or thirteen months interest free for balance transfers.  This was not on any purchases.  This is how competition has changed the type of business that is being done.  However if you watch all of the different credit card offers being offered month to month you will notice that the offers keep getting better and better.

Applying for credit cards has become a business that should be done very smart and carefully.  When a person sees a good deal they should be careful and think about the long-term effect on their credit score and credit history.  It is important to remember that the credit card balance will need to be paid back eventually.

Credit card companies are out to get your business and your money.  By offering a good introductory interest rate that is their way of trying to reel you in.  Just because you have a good introductory rate it is important to read the fine print.  Sometimes the interest rate will go back to the original amount of the credit card when the time has expired.  Do you research carefully and do not fall into the credit card traps.

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About the Author: Jay

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