The Credit Card Battle Begins…

During the recent months, people have become more wary about applying for credit cards. Card companies have resorted to increasing customer's minimum payments and APR in attempt to improve their finances, much to their disappointment. Many customers feel victimised by these changes, and this may make new applicants think twice before applying for a credit card in such an unstable market. It is predicted that credit card companies will be forced to compete heavily to attract new customers, and will be forced to offer special deals to entice more numbers.

On one hand, the credit card companies are struggling. Some have even eradicated their interest free periods as they were losing them so much money (in excess of £600 million per year). However, some issuer's have ignored the economic crisis and are offering even more special offers to make sure the credit card market will be drawn to them. MBNA have launched a new credit card which offers an air miles scheme, which will give every customer 2 miles of air travel for every £1 they spend. Eventually, the card's customers will build up enough air miles to be able to travel to either Europe or America.

This strategic offer is set in place so that customers will spend more of their cards, and in return will generate more revenue from interest rates for the company. This card also offers an interest-free period of three months, something which is becoming less common and more sought after. These special and introductory offers are said to be one in a long line of card companies who will pull out all the stops to attract customers. This offer will appeal to many potential applicants, so competitors will have to follow suit if they are looking to expand their volume of custom.

You can find good deals on credit cards if you are prepared to look for them. Search for interest free credit cards and balance transfer credit cards to make sure that you save some money on interest.