Finance Choices
Competition boost for credit card holders
Credit card customers could be set to benefit from ever-better deals, as competition between card providers hots up.
Already card companies are extending zero per cent deals in an attempt to secure customers in a receding market, seeing so-called 'rate tarts' cost lenders around £2 billion to £3 billion a year.
But Moneynet.co.uk today predicts that UK credit card providers will have to produce even better deals in the future to hold on to customers.
"The standard credit card is effectively an endangered species," said Moneynet chief executive Richard Brown.
"And there are new threats to the overall health of the credit card ? Egg?s new new Money Manager account, effectively a debit card with an overdraft facility where you earn interest on credit balances and pay interest when overdrawn ? is likely to herald a new trend, with more flexible cards that will pay interest when in credit," he added.
And all of this is good news for consumers - who are set to benefit as card companies compete for their custom.
Mr Brown explained: "Competition in the credit card market is potentially excellent news for consumers, and with the likes of Egg shaking up the market with innovative new products, the longer term outlook for the canny borrower is good.
"But for the credit card company executives, the future might not be so rosy."
Already card companies are extending zero per cent deals in an attempt to secure customers in a receding market, seeing so-called 'rate tarts' cost lenders around £2 billion to £3 billion a year.
But Moneynet.co.uk today predicts that UK credit card providers will have to produce even better deals in the future to hold on to customers.
"The standard credit card is effectively an endangered species," said Moneynet chief executive Richard Brown.
"And there are new threats to the overall health of the credit card ? Egg?s new new Money Manager account, effectively a debit card with an overdraft facility where you earn interest on credit balances and pay interest when overdrawn ? is likely to herald a new trend, with more flexible cards that will pay interest when in credit," he added.
And all of this is good news for consumers - who are set to benefit as card companies compete for their custom.
Mr Brown explained: "Competition in the credit card market is potentially excellent news for consumers, and with the likes of Egg shaking up the market with innovative new products, the longer term outlook for the canny borrower is good.
"But for the credit card company executives, the future might not be so rosy."
posted by Bruce Wayne at 6:41 AM
Competition boost for credit card holders
3 Comments:
Good, good. The more credit card companies out there the more great credit card deals there will be available for me.
Bring it on!
These special offers might not last forever. Since interest rates are on the rise, it may be harder for credit card companies to continue offering these great deals. Especially these 0% intro APR offers for 12 months (or more).
Take advantage now! While there will continue to be competition between credit card companies, they're still limited by a variety of factors. It doesn't get any better from here!
I think that there is a greater range of financial products and services than ever before. Although this can be confusing, people have alot more choices than in the past. Of course we need to get more information on what is available to us, this is readily available - but much of this is common sense.
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