These days, millions of consumers are getting their finances in order and may be feeling better about their position as the economy improves. Consequently, many credit card lenders are now issuing a far larger number of high-value offers for new accounts that consumers may find enticing.
As the economy continues to recover after the recent recession and factors that impact consumers’ ability to spend – such as incomes and unemployment rates – improve steadily, many credit card issuers are once again offering a large number of new accounts to potential borrowers, according to a report from Los Angeles television station KABC. During and in the months following the recent recession, credit card issuers significantly tightened their lending standards to shield themselves against the rising tide of delinquency and default, but improving conditions have prompted those requirements to loosen once again.
“The economy has stabilized,” Nessa Feddis of the American Bankers Association told the news station. “It’s more predictable about who will be able to repay their debt. They’ve eliminated a lot of the debt that people weren’t able to pay.”
In fact, many lenders are even extending offers for new credit cards – though not necessarily good ones – to consumers who have defaulted in the past and had their accounts canceled, the report said. However, the best offers are understandably being extended to those with strong borrowing histories, and these include high-value rewards accounts, or those that carry extremely low interest rates and fees. Other such offers that those with high credit scores may enjoy are those for generous balance transfer cards, some of which offer 0 percent interest rates for the first six to 18 months the account is open. These accounts can be extremely beneficial to those who have good borrowing habits but want to eliminate their outstanding balances.
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For this reason, consumers with any kind of credit background who receive an offer for a credit card should think carefully before accepting the new account. This is because with lenders opening up so many new offers to consumers, it’s likely that they’ll have a large number of accounts available to them, which they can comb through to figure out exactly which account is best for them and their unique financial situation.