A recently released from report from CardHub, based on an analysis of more than 1,000 credit card offers, revealed some interesting findings. Chief among them is the continued focus from credit card issuers on consumers with existing debt.
“After two years of 0 percent balance transfer offers gradually becoming more generous while 0 percent offers for new purchases worsened slightly, introductory financing terms appeared to have stabilized at the end of 2015,”
“Interest-free introductory terms are now 16 percent longer for balance transfers than new purchases, reinforcing CardHub’s hypotheses that issuers are more intent on attracting the balances of consumers already mired in debt than incentivizing people to incur new debt in a recovering, yet uncertain economy.”
The report contains plenty of other interesting insights on the aggregate pricing acquisition strategies of credit card issuers in 2015. I would encourage any one who is interested to check out the entire report.
Overview by Alex Johnson, Senior Analyst, Credit Advisory Service at Mercator Advisory Group
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