As more consumers begin to get their finances back under control, whether on their own or through the use of credit repair services, it seems many of them are also willing to give credit card spending another shot. According to a study from comScore, at least 20% of Americans admitted that they went shopping for a new card last year, with another 34% stating they felt optimistic about their financial situation and the economy in general.
With this many consumers ready to try their hands at spending some money again, we must be coming out of this giant economic slump we've been in for the past 3 years, right? Not exactly. Our national unemployment rate continues to hover around 9%, with people fighting each other for jobs at McDonald's.
What this hopefully means for consumers is that the past few years have taught them a thing or two about managing their finances and credit card debt, so they're better equipped for handling major credit accounts or any loans they might try and apply for.
If nothing else though, it certainly seems the last few years have at least taught consumers what to look for when applying for a credit card. According to the same comScore study, when asked what sort of features consumers look for the most in a new credit card, 40% stated they wanted a card with the lowest interest rate possible, while another 28% said they'd prefer a card with no annual fee. Only 13% stated that rewards point were a factor when choosing a credit card.
That's quite a change from the last few years, when most people looked for cards that offered the most cash back or air travel miles when searching for new cards to lines their wallets.
Of course, with gas prices threatening to rise as high as $6 per gallon by summer €" and many people already admitting their monthly budgets are suffering as a result €" it's not hard to see why so many consumers are switching their preferences.
So what advice can I dish out to consumers looking for a chance at re-establishing credit?
€ Remember to keep your charges below 10% of your available credit balances
€ Pay your card's bill BEFORE the due date (call your card issuer to find out when they report your accounts to the bureaus, then make sure you pay before that date for an extra boost to your credit scores)
€ And don't apply for too many new cards at once €" it makes you look desperate and unreliable to lenders.
Pretty standard stuff to remember, but you'd be surprised how many people seem to forget even these most basic steps. Make sure you aren't one of them.
With this many consumers ready to try their hands at spending some money again, we must be coming out of this giant economic slump we've been in for the past 3 years, right? Not exactly. Our national unemployment rate continues to hover around 9%, with people fighting each other for jobs at McDonald's.
What this hopefully means for consumers is that the past few years have taught them a thing or two about managing their finances and credit card debt, so they're better equipped for handling major credit accounts or any loans they might try and apply for.
If nothing else though, it certainly seems the last few years have at least taught consumers what to look for when applying for a credit card. According to the same comScore study, when asked what sort of features consumers look for the most in a new credit card, 40% stated they wanted a card with the lowest interest rate possible, while another 28% said they'd prefer a card with no annual fee. Only 13% stated that rewards point were a factor when choosing a credit card.
That's quite a change from the last few years, when most people looked for cards that offered the most cash back or air travel miles when searching for new cards to lines their wallets.
Of course, with gas prices threatening to rise as high as $6 per gallon by summer €" and many people already admitting their monthly budgets are suffering as a result €" it's not hard to see why so many consumers are switching their preferences.
So what advice can I dish out to consumers looking for a chance at re-establishing credit?
€ Remember to keep your charges below 10% of your available credit balances
€ Pay your card's bill BEFORE the due date (call your card issuer to find out when they report your accounts to the bureaus, then make sure you pay before that date for an extra boost to your credit scores)
€ And don't apply for too many new cards at once €" it makes you look desperate and unreliable to lenders.
Pretty standard stuff to remember, but you'd be surprised how many people seem to forget even these most basic steps. Make sure you aren't one of them.