Research Sheds Light On Credit Card Rewards Programs
September 30, 2008 · Print This Article
TowerGroup, the pioneering research and consulting company dedicated to serving today’s leading financial institutions, has issued a new report. It is called “Pointing in the Right Direction: Rethinking Credit Card Payment Rewards in a Challenged Economy.” The report explores today’s hurting economy and offers insight into what credit card companies can do to help customers make their payments in these troubled, troubling times.
Traditionally, credit card companies have offered such rewards as free vacations or other luxuries to customers that demonstrated reliability in maintaining good credit and getting payments in on time. This has worked very well for over 25 years, says TowerGroup’s research. Credit card companies saw that they could get their customers to make more purchases via credit card with old-style motivational rewards and loyalty programs.
It’s also been demonstrated that a good incentives program can get customers to measurably prefer one credit card to another. In fact, TowerGroup’s research suggests that rewards programs are responsible for or involved in up to 70% of all credit card transactions in the United States.
But, the recent financial downturn instigated by the subprime credit crisis in the United States has made conditions different for the purveyors of credit cards. Buyers are no longer so confident and, hence, no longer so eager to buy. Traditional incentives that credit card companies have offered – Carribean getaways and expensive electronics equipment and the like – appear in a very different light to the consumers of 2008. For these cash-strapped consumers, who may be thinking more about how to hold onto their homes rather than about a tropical vacation, it is a more sinister light.
How can credit card companies respond to these dark times? They should think about giving rewards of cash, which could help people pay off debts. This, in turn, would motivate people to pay off their credit card debts and improve their credit rating.
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This has some very valuable information. I’m glad I know this information now, I feel like I’ve been placed at a huge advantage. Thanks!
That’s an interesting point.
I believe mac os x is more so based on freebsd, etc.
STOP paying debt and walkaway from underwater mortgage?…and guess who’s got who by the balls.
If you don't have any credit to begin with you won't get a best one. You'll get the bottom of the barrel one that will most likely charge outrageous interest rates. For a first time credit card, get one at a department store and build your credit this way. Get it built up pretty well until you have a few department store cards and keep a good payment schedule.
Give it about 6 months to a year to build up good credit with these cards and then keep paying them off, then charging small amounts and then paying them off again. Do that, don't try getting a major credit card without any credit, you will hate the company or bank you signed on with and yourself for going for it anyways.
I did just that and pretty much screwed up my credit, now it's much better.
This afternoon I was driving home from Tallahassee, listening to the Skatalites, and wondering if I’ve ever been this (sustainably) happy. It’s so nice, especially after so many years of wondering if life was even worth it.
Nice research (not really since it is an article written by a reporter and not the legislation itself). So the key words here (again chosen by a reporter) are: “could” and “likely.” You still have not proven your assertion. Is this all it takes to convince you?
Article by at 2010-08-11 14:06:32
Categorized in Finance,
A host of low interest credit cards is already in the e-marketplace favoring those with a revolving credit – in other words, those who carry a monthly balance. The interest rates on these cards tend to be around 10% while the rates on normal cards coul…
I dont have an answer but GOOD LUCK
p.s. You might do better calling chase or american express and pretending to be an eight grader asking for school project research!
Wow…thats a loaded question….ask the "answer man" on yahoo!
Ah, The Magestic."We don't accept credit cards, debit cards,cheques,large bank notes….." I miss the old days, it's too slick now.
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we use propay.com it may be of value to u.
we are mobil at numerous site so it works over the phone with no problems at a reasonable price.
Jemm. My angels seem to be watching out for me… I had just crushed the phone in the driver’s door, so the video screen didn’t work (and my sister mailed me a replacement phone already). The computer bag had a messed-up zipper & I was going to have it repaired. – I wonder if my thief will figure out that Briggs & Riley has a lifetime fix-anything guarantee…
Depends on if they are a professional or not.
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Taking Credit Cards payments
Credit cards offer a variety of approaches to APR. Some will offer you a fixed-rate APR, so youâll be paying at a particular interest rate for the whole time you have a balance