Summary:

How do credit card companies target new customers?

Question

Asked: Mar 17, 2010

How do credit card interest rates differ by company? Define the strategies that companies use to target new customers

Categories: In Money and Finance > Money and Finance - Other
In Sales and Marketing > Sales and Marketing Strategies
Industries: In Financial Services > Banking

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Answers

The best card is the one you qualify for. If you qualify for more than one, make sure you compare rates to include when the low introductory rate jacks up as well as transfer fees and rates and cash advance fees and rates. Also, make sure you compare reward programs. If you don't travel, you would not want air miles (in my opinion, cash back is the best).

Hard to tell you which is best for your business - but, you can compare different cards here - http://www.businessmoneytoday
.com/Search/Business_Credit_C
ards.html

Answered: Mar 20, 2010


Hi tampa24

Credit card interest rates do differ by company, but a lot of that has to do with the type of customer they are trying to attract.

For example, if a company is offering credit cards with low interest rates, you will likely find that they are looking for customers with excellent credit. And when you do find an offer with a low interest rate attached, look closely as the interest rate that you yourself qualify for might be much higher. One credit card offer might (and usually will) have different interest rates levels for different customers depending on their credit score.

One strategy that credit card companies use to target new customers is the low or zero interest balance transfer. After signing up for one of these credit cards you can transfer your existing card balances to the new card and avoid paying interest for up to 12 months. The one "catch" if you will, is that most companies charge a balance transfer fee of up to 5% in order to take advantage of the balance transfer offer.

Not all balance transfer offers are created equal so shop around. For info and tips on choosing the best balance transfer credit card click here.

Hope that helps.

Cheers

Bruce

Source: http://www.debt-help-and-be...

Answered: Mar 23, 2010

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