June 28, 2005

With the upsurge in 0% free periods on balance transfer and purchases, the credit card issuers of this world have shot themselves in the foot and are now beginning to realise it, after they have taken the credit card knowledge of the customer to lightly.

Two words spring to mind, “Double” and “Standards”

They have started to complain that to many people were changing from credit card to credit card and not being as loyal as they were before he introduction of the 0% deals, but it was al of they’re own doing, s they were the ones who were offering deals to entice customers away from other credit card issuers, to switch over to they’re credit card.

The credit card companies are complaining

Two words spring to mind, “Double” and “Standards” in one hand they are willing you to take up the special offer that they place in front of you, but in the other they are complaining when you switch to another card away from them, it is all down to self preservation and the though of the naivety of credit card customers who for so long have just plodded along to the tune hat they have been playing and with the customers now composing their own tunes they simply don’t like it.

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They have brought about “Rate Tarts” themselves, a term used for credit card customers who jump ship from one credit card to the next, by transferring their existing credit card balance on to a card hat will give you the 0% deal for another period of 3 to 12 months, before the current 0% fee period is over, leaving the customer to service their credit card debt interest free.

The credit card companies are complaining as profits are dropping due to the fact that they are not raking in the cash in interest charges, but what they do hide well is the fact they are still making profit on the little hidden charges that they hide in the small print, well I say small print when really it should be called headache print, as after you have strained your eyes to read the first couple of lines, you are reaching for a headache tablet.

Conclusion.....

It leaves you to think if the credit card companies dropped the interest rates they charged to a lower and more acceptable level for all and not just the more wealthy among us, then the need for customers to now look to changing cards would be less frequent and the loyalty that they crave would come back, but that loyalty should work both ways and not just in the favour of the credit card issuer.