More credit card offers available to consumers

Money management is difficult, especially in a tough economy. Some Floridians are struggling to pay off credit card debt. Although credit cards can lead to financial disaster if they’re misused, they can provide consumers with rewards as well as the opportunity to build their credit history.

For consumers and merchants, credit and debit cards make transactions faster and more convenient. Merchants cover the cost of the credit card transaction service, but in return, consumers tend to spend more with plastic. When banks provide rewards credit cards to consumers, merchants also bear those costs. However, rewards cards are becoming less common. 

Following the recession, credit card companies tightened their standards and only issued new cards to people with excellent credit scores. These consumers were offered credit cards with as much as 3 percent or even 5 percent cash back. Because the credit card companies want consumers to use their credit cards for everyday purchases, the rewards typically apply to gas and groceries.

Now that the economy is recovering, lenders have begun to offer credit cards to people with less-than-perfect credit ratings, and attractive rewards cards have become less common. As a result, consumers may notice more offers from credit card companies, most of which are coming through the mail. Because so many credit card companies are competing with each other, it can be worthwhile for consumers to shop around to find the best card for their family. One family reportedly earns $1,000 in credit card rewards each year.

People who find themselves with overwhelming credit card debt due to unemployment, reduced income, or some other cause may want to talk to a lawyer. Bankruptcy may provide debt elimination, and they may be able to get a fresh financial start.

Source: Source: Arkansas Business, “Relaxed Standards for Credit Cards Mean New Offers for Consumers,” Gwen Moritz, August 5, 2013