Time For Us To Lower Our Expectations On Credit Cards
Not so long in the past, while in the heyday of the credit boom, mastercard and visa issuers would be falling over themselves to draw in new customers. One of the main ways they did this was to provide ever more appealing options on their cards – longer 0% balance transfer packages, reduced rates, further lucrative incentives plans; all with the motive of forcing their way to the very top of the best buy tables stationed on the many comparison web sites online. A spot at the top of these tables could make sure a card company a rush of all new applicants, and so eager were they to achieve new business their acceptance standards were commonly surprisingly low, so it was simple for the average person to get hold of a good visa or mastercard with some appealing features.
This history has raised our presumptions of what to look for in a card, but of course the wider picture has transformed massively subsequently. In the aftermath of the credit crunch and following slump, card issuers have mostly been looking to actively greatly reduce the number of accounts they operate, attempting to decrease their experience of bad debt as millions of individuals end up in financial difficulties. But not only have a lot of famous card issuers terminated the accounts of thousands of cardholders, others have elevated their APRs to punitive levels to persuade folks to change to a new card and so lower the issuer’s exposure.
One more result of all this is the fact that financial institutions won’t be quite so eager to force their credit cards to the top position in the comparison tables, and so the offers available are becoming less appealing across the board. Naturally, you can still find some exceptional deals out there, but in order to be approved for these card accounts you must have a much better overall credit score than was mandatory during the past.
So what does all this suggest? Effectively, if you are seeking a new credit card – and consumer demand is still strong – it seems sensible to lower your sights somewhat. The best credit cards are only really obtainable for those with pristine credit ratings, and average folks have to settle for something less. In place of going for a card with remarkable qualities across the board, make a choice of one characteristic which is most critical to you, and get a card offering a good if unexceptional deal in this area – and one with acceptance conditions you likely will meet.
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