Companies might even target a more tech-oriented audience with emails detailing the latest in credit card rewards or low fee cards.
But a direct mail tracking service from market research firm Synovate shows that U.S. households are receiving fewer offers for credit cards than they had in the past. And, when they do get mail from credit card issuers, it is increasingly offering cards that carry an annual fee.
“Many issuers have scaled back significantly and some have been relying more on proven co-branded airline programs, which typically carry an annual fee,” said Andrew Davidson, a vice president in Synovate’s Financial Services Group.
According to the company’s research, American families received over 372 million credit card offers during the first quarter of 2009 compared to over 1 billion during the same period in 2008.
Of those mailings, 27 percent in 2009 were cards with annual fees, but just 18 percent were fee-related cards the year prior.
Actions of politicians and the federal government may also play a role in the changing landscape of credit cards in America.
“There is a great deal of speculation as to what the credit card industry will look like once the Credit Cardholders’ Bill of Rights comes into effect but, while the majority of offers continue to carry no fee, we may already be moving in the direction of a fee-based model,” Davidson noted.
The trend of Americans scaling back their use of credit has already begun and Davidson believes that more annual fee credit cards may whittle the amount of plastic carried by consumers down to just one or two cards.
Similar Posts:
- Credit card companies targeting the wealthy for new cards
- Credit crunch may offer silver lining
- As more consumers focus on debt reduction, creditors eye wealthier customers
- Banks scaling back their rewards cards
- Offers for credit cards increase in October
Recent Comments