BIRMINGHAM, Ala. As credit unions turn a greater focus to credit cards, so too has the competition.
Industry analysts report they are seeing a greater number of very attractive introductory offers, many at 0%. Credit card experts say the market is seeing the best promotions for plastic since the Great Recession. Analysts indicate credit card issuers are able to offer 0% rates to a significant group of consumers due to an expectation that interest rates will remain low and the unemployment rate will not climb dramatically through the end of 2014.
Bill Hardekopf, CEO of Lowcards.com, says the lowball offers have been occurring since 2011. “You can receive 0% intro offers for anywhere from 12 to 18 months, but usually only if you have good or excellent credit scores. Those consumers present far less risk to issuers so the issuers are competing heavily for those consumers. We think that will remain in place as long as the economy continues to be good for people with those scores. In fact, if the economy continues to prosper, issuers may loosen their tight grip on approvals and slightly lower the bar on the credit score needed to be approved for these offers although it will not be as loose as it was before the economic downturn.”
