Charge card mail is making a comeback, and economists see this as good news for the economy. A reawakening of credit card offers is hitting mailboxes across the U.S. The Mintel Comperemedia study found that offers for new charge cards skyrocketed from 551 million in the fourth quarter of 2009 to 1.4 billion in the final quarter of 2010.

Making the credit offers shine

Some of the new benefits to credit cards are things like; no transfer fees, extended low introductory rates, and no foreign transaction charges. Waiving balance transfer charges is among probably the most popular features. Senior V.P. Andrew Davidson of Mintel told CreditCards.com that banks will do almost anything to grab the competitive advantage. According to a recent Bankrate study, 15 bank charge cards and 25 credit union charge cards eschew balance transfer fees. For banks that did charge interest on balance transfer charges in 2010’s fourth quarter, the mean rate was 3.06 percent.

Working to be your intercontinental champion

The foreign arena or currency conversion charges are a large competitive area for charge card issuers. Transfer charges and APR charges are above significant for anybody who travels for business purposes or for pleasure. Most cards add a 3 percent surcharge for each foreign transaction, a tax that can add up easily. A Pew Trusts study conducted last year showed that over 90 percent of bank cards had this fee. HSBC, Chase, and Citibank; are a few the major banks that currently waive their foreign transaction charges.

Banks are also providing extended introductory rates

Perhaps the most hotly contested area in the charge card mail wars is the extended introductory rate. A low first APR for balance transfers and purchases is appealing to consumers, and some credit card issuers even dangle a zero-percent Annual Percentage Rate. Mintel reported the introductory rate was around 13 months for the fourth quarter of 2010. However, that number is trending higher, states Davidson.

“The squeeze on credit observed during mid-2009 is being reversed, and many issuers are now offering durations of 15, 17 or 18 months or more,” he told Bankrate. “We have even seen offers with 24- and 30-month intro rate durations in recent months.”

Credit card legislation has kept rates of interest down

Charge card interested rates have been maintained due to The Credit Card Accountability, Responsibility and Disclosure Act (CARD). 14.03 percent was the average APR in the fourth quarter of 2010, according to Mintel. “Many credit card companies have contrasted their APRs against the relatively high prime rate as a consumer draw,” said Davidson.

Articles cited

Bankrate

bankrate.com/financing/credit-cards/4-trends-in-credit-card-mail/

CreditCards.com

creditcards.com/credit-card-news/foreign-exchange-fees-going-up-1267.php

Pew Trusts

pewtrusts.org/uploadedFiles/wwwpewtrustsorg/Reports/Credit_Cards/PEW-CreditCard FINAL.PDF

WhiteHouse.gov

whitehouse.gov/the_press_office/Fact-Sheet-Reforms-to-Protect-American-Credit-Card-Holders/

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