Almost every second American has several bank cards, that is why credit card market news are relevant for most residents of the USA. Such a variety of cards is due to the fact that they are allocated for various needs. Some, for example, are used to pay for daily purchases, others are saved for large expenses, others for travel and so on. This is due to different conditions for each of the cards.
In this country, a credit rating is asked everywhere. Without certain level of credit score, you cannot profitably rent a house or buy a car. Of course, it is permitted to make transactions without a credit rating, only their conditions due to the fact that the company has no idea about your solvency and discipline will be less profitable. So, in America everything is tied to a credit rating, and it, in turn, starts with the use of credit cards.
Credit card features
The conditions of some credit cards are designed in such a way that they are convenient and beneficial for small purchases. For example, they have a very low interest rate, but with it a small grace period. Other credit cards are selected according to the type of accrued bonuses and it is advantageous to use them to compensate for part of the costs. Therefore, you need to pay attention to all these parameters when choosing the offers that are right for you, and therefore you should be aware of credit card market news.
There have always been many banks in America. Some of them entered the national and international market, others operate on the territory of a particular state. There are thousands of them and in the conditions of fierce competition, banks offer their customers various credit programs with all kinds of bonuses. Citizens of America have learned to profitably play on the privileges offered by banks. You just need to choose some of the most favorable options for your life conditions, needs and income level.
From credit card market news, you can find out that American banks also offer their customers special credit programs, choosing the conditions of cards in such a way that they are beneficial for certain actions. For example, many banking institutions offer special cards to raise credit ratings. They, as a rule, are deprived of additional bonuses, such as cashback, and have rather bad conditions for the client. But they are issued even to those with a poor credit rating, and frequent use and timely repayment of debts provide a chance to increase it.
Some large stores issue their own credit cards, which can only be utilized in that stores for payments. For example, the Amazon Store and Amazon Prime cards issued by Synchrony Bank are an excellent instance of such an offer. All customers can get the Amazon Store, unlike the Amazon Prime card which may be available only to owners of a premium account. These credit cards have a fixed interest rate of 25%, but the Amazon Prime Store Card offers 5% cashback.
- Almost all credit cards can be ordered online and picked up by mail. It takes a different amount of time, but overall it is a hassle-free and quick procedure. However, consumer lending is gradually going online. Credit cards were no exception, and therefore new solutions in this segment are increasingly appears on the market, which over time can change the industry beyond recognition.
- Typically, most banks seek to offer their customers classic credit cards above all. This product is often offered somewhat intrusively in one way or another, while there are not so many really good and convenient offers from traditional banks.
In addition, the process of obtaining a card over the past few decades has not changed significantly. For many years this could only be done at banks offices. Card delivery by courier or mail was considered a real breakthrough several years ago. Of course, plastic cards improved and changed over time, for instance, the built-in microchip replaced the magnetic strip, but basically the product remained the same as it was.
Virtual credit cards
Meanwhile, credit card market news reports that contactless payment technologies, in particular Google Pay and Apple Pay, are gaining more and more popularity. The development of such services essentially means that the days of plastic cards are numbered. In some European countries, more and more ATMs are appearing, allowing customers to withdraw cash from their accounts without using cards. Identification of account holders takes place via SMS, in which they receive a unique code to complete a transaction at an ATM.
Also, in some countries of the world, new generation of payment cards with wider functionality are being developed. For instance, smart cards are gaining popularity in Japan, which, in addition to payment functions, can be used for identification, travel on public transport, as well as for various benefits or discounts in retail networks. The introduction of such products creates opportunities for expanding intersectoral integration.
However, in order to succeed in the market, a truly revolutionary product is simply obliged to meet all the existing demands of the modern consumer. It should be characterized by the availability of convenient service, security, attractive service conditions and advanced functionality. In the age of the Internet, credit cards must comply with the “spirit of the high-tech times”.
In August 2019, Apple – the most successful mobile technology seller announced the launch of the Apple Card virtual bank card. Goldman Sachs, an investment bank, acts as a credit card issuer in partnership with the Mastercard payment system. For the present it is available only in the United States. Users can apply an Apple credit card on their own in a few minutes in the Wallet application.
To get a card, you need a smartphone with iOS version no lower than 12.4 and an American Apple ID account. At the registration stage, you will need to enter the mailing address, date of birth, income level and the last four digits of the social security number. Then this data will be sent to Goldman Sachs, after which the bank representative will approve or reject the application. As soon as the application is approved, the credit card will immediately appear in the Wallet application. There you can view information about expenses, payments, accrued cashback. Spending is categorized automatically.
- Each card is assigned a virtual number for the possible cases when seller does not support the Apple Pay payment function. The Apple Card itself has no expiration date or security code. You can block it with one touch in Wallet, but to completely deactivate the card you need to write or call Goldman Sachs.
- For purchases with the Apple Card 2% cashback is credited once a day, including digital goods in the App Store, for payment with a physical card or virtual number 1% cashback will be credited. The annual interest rate will be from 12.99 to a little over 24%. Apple will not charge fee for annual maintenance, deferred payments, or international transactions.
If it is desired, the user can order a physical card made of titanium. An NFC chip is built into such a credit card for making contactless payments without a smartphone.
The future of credit card market
Similar products will increasingly appear on the market in the future, which can be found out almost daily from credit card market news. Thanks to the development of financial technologies, the largest online trading platforms and retail chains have received a whole line of possible payment options for every taste, depending on the preferences of their customers. Buyers began to use various electronic wallets, cryptocurrencies, rechargeable prepaid cards, PayPal, Google Wallet, Bitcoin, Amazon Payments and many others.
It is worth noting that due to the factor of transaction speed and ease of processing, the rate of active users for virtual cards is an order of magnitude higher than for holders of classic credit cards. After attaching to Google Pay and Apple Pay services, a virtual card can be used not only on the Internet, but also in ordinary offline stores.
This trend has flaws, but overall is the driving force behind increasing sales and improving online sales services. Thus, traditional plastic cards will probably irrevocably become a thing of the past within closer 10 years.
Start using a credit card today
Every ordinary American has two to three credit cards. People try to keep track of credit card market news, and parents teach children how to use a credit card correctly starting from high school. There is even the opportunity to open an account in the name of the child. All this is due to both favorable credit conditions and the fact that living without a credit card in the USA is extremely inconvenient.
The formation of a positive credit rating most often begins with a credit card. The easiest way is to order a credit card with a security deposit and gradually increase your credit rating to receive other more advantageous offers. For example, having placed 2-3 thousands of dollars on such a deposit and actively using the card during the year, it is quite possible to earn more than 700 points in the credit rating, which is already considered a fairly high position and opens up access to more advantageous credit terms.
Then select a bank card that matches your expense and avoid delays. You can apply a credit card almost anywhere by providing the lender with identification documents and some personal information. If you choose a credit card in accordance with your lifestyle and use it wisely, then this can be done completely free of charge. You will be able to pay for its service much less than the bank will accrue to you in the form of bonuses, and you will also earn a good credit history, which will allow you to take larger loans on favorable terms in the future.