Credit card companies have greatly increased in number since last several decades. That is because of the rising market of the credit card holders. However, the competition is still very stringent and credit card companies make their way in this market by popping up with great promotional plans and other feasible programs for their users.
Strategies used by credit card companies to attract users
The basic goal of these credit card companies is to cater a wide variety of users and for this reason they use many strategies to hook different types of users. In recent past years, it has become more evident that credit card companies use the strategy of applying lower interest rates to get more and more credit card users on their list and in their business. This strategy is not the preferred choice of credit card companies and it has just become the part of advertising campaigns since credit card users are willing to work only with companies that are offering low interest rates.
What a user seeks in a credit card company?
Usually, when users consider taking out credit card, they seek for credit card companies that are offering low interest rates in the market. This is wise enough for a user to opt out a credit card that provides ease of making our chases or pay off bills without incurring high interest rate on the balance of their credit card.
Why people seek for low interest rate credit cards?
There are generally two distinct types of credit card customers. One type includes people who do not keep large amounts of money in their credit card accounts for their own convenience and security purpose. This also is very useful for those who are out of town for business meeting or for any other purpose. Such type of people are not much interested about the interest rates on their credit card, as they are able to pay off entire amount of their credit debt in one full payment on monthly basis.
The other type of credit card customer includes people who are unable to pay off their credit card debts and can only make partial payments. For this reason they seek for lower interest rates on their credit card.
Benefits of having low interest rates on credit card
Low interest rates slow down the rate at which the debts of credit card accumulate. When credit card customers make partial payments each month, it simply means that they have to pay off an interest on the remaining amount of money that they still owe the relevant credit card institution. The interest rates remain incurred on the principal credit of the existing period. If users have low interest rates on their credit card then the process of increase in debt becomes slower. This is the central reason that forces many credit card holders to seek low interest rates credit cards.
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