August 27, 2010
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News: Credit Card Offers On The Rise
During the recession, credit card companies not only reduced the number of card offers to consumers, but in some cases halted extending any offers. Furthermore, card offers that were extended typically included an annual fee. Cardholders not only found an absence of credit card offers, but in many instances, soon discovered that the credit limit on their current account had been slashed. However, recent statistics indicate that not only have lenders increase the number of card offers being extended, but many come with no annual fee. A study by the Mintel Comperemedia indicated that during the second quarter of 2010 the percentage of credit card offers with annual fees actually declined in comparison to the same period 2009. On the other hand, card offers increased from 419 million to a whopping 1.1 billion during the first half of 2010. During the entire 2009 year, card offers only totaled 1.4 billion.
Chase bank has been one of the most aggressive in extending new credit card offers. The nation's largest card issuer nearly quadrupled its offerings. A large number of them have been the bank's Ink card aimed at capturing a portion of the American Express affluent cardholder. Citibank was also a major player; the bank nearly tripled its credit card offer during the recent quarter.
Other major player in stepping up its credit card promotions is Bank of America. The bank recently launched a new MBNA card that enables cardholders to compare their savings and monitor their spending through its online banking service. Bank of America is offering an introductory interest rate of 1.9 per cent for the first 12 months with no handling fees fee on money and balance transfers made within the first three months from the date the account is opened. This great deal can only be accessed through the bank's online site.