Credit Card Issuers Use Debt Management Tools to Lure Accounts

By , CardRatings contributor
  • Google +
  • Twitter
  • Facebook
Credit Card Issuers Use Debt Management Tools to Lure Accounts

Credit card companies that once looked for reasons to keep account balances high are reshaping their images as proponents of responsible money management. In a recent USA Today feature, author Kathy Chu documented some of the ways that credit card companies have shifted gears to help cardholders handle their finances more effectively:

  • American Express promotes its charge cards as an effective cash flow management tool for small business. A few years ago, analysts saw this core American Express product line as a liability. Today, industry watchers celebrate it as a low-risk, high-reward opportunity to generate profits from interchange charges and annual fees.
  • The Chase Blueprint program allows select cardholders to choose their own terms for major purchases without opening up additional credit card accounts. The automated system facilitates multiple sets of terms and conditions that can help keep minimum payments and finance charges low without running afoul of new credit card regulations.
  • Discover Card has integrated debt management tools and information into its website in advance of new credit card laws that could curtail some cardholders' credit limits and spending habits.

Banking industry analysts predict that more credit card issuers will follow suit in the coming months, as core profit generation shifts to processing fees and away from finance charges.

0 Responses to "Credit Card Issuers Use Debt Management Tools to Lure Accounts"

No Comments

Leave a Comment
About Our Ratings ×

Our editors rate credit cards objectively based on the features the credit card offers consumers, the fees and interest rates, and how a credit card compares with other cards in its category. Ratings vary by category, and the same card may receive a certain number of stars in one category and a higher or lower number in another.

The ratings are the expert opinion of our editors, and not influenced by any remuneration this site may receive from card issuers.

Advertisers in our database are highlighted, and advertisements include an option to apply using links on our site. CardRatings.com may be compensated by companies mentioned on the site when a user's application is accepted or approved by such companies.

How do your cards stack up?

Compare your card starting here


Featured Partner Cards