Learn the Top Credit Card Trends
There are several new credit card trends to look forward to. These credit card trends will streamline the entire process that comes with using your credit card. Additionally, several of the trends will tighten security when it comes to your credit cards.
The best part is that each credit card trend can apply to different cards. So, this means you won’t miss out if you have one particular card. CreditFast® will go over the eight most exciting credit card trends coming.
Eight Exciting Credit Card Trends
Credit Trend One: Discover and MasterCard are Doing Away with Signatures
A huge credit card trend coming by April 2018 is moving away from traditional signatures. Discover wants to implement these changes early on and have them perfected by mid-2018. Although it may be difficult to do away with signatures completely, they’re adding several security measures. Discover wants to implement multi-factor authentication processes along with biometrics.
MasterCard already announced that the company invested in research to switch to biometric fingerprint scanners. This can streamline the entire credit card process. Additionally, with two bigger companies looking at alternate security measures, it could push retailers to change faster. Biometric fingerprint scanners would be more secure than the traditional pin or signature. All of this can work to cut down on fraud and identity theft.
Credit Trend Two: The Focus Shifts to Long-Term Customer Loyalty
Credit card companies have focused on the short-term customer for years. They give big signup bonuses to entice new customers, but don’t do much for their long-term clients. This credit card trend has begun to change already, but soon will kick it into high gear. Some credit card companies are focusing on tiered rewards systems to reward their long-term customers.
Credit card companies also promote loyalty by upping their customer service. Discover kicked this credit card trend off by providing an in-app messaging feature. This allows agents to see the entire interaction history. In turn, this streamlines the process when there is an issue.
Credit Trend Three: Higher Interest Rates
Cardholders may not greet this credit card trend with much enthusiasm, but it’s coming soon. The last Fed rate hike occurred in June. The Federal Reserve put out a projection of trends, and it suggested interest rates could rise by 0.34 this year. In turn, this trend can make credit card debt more expensive.
However, you could also use this as a motivation tool. If you pay off your balance each month, you don’t pay interest. So, knowing you’ll have higher interest to pay off can motivate you to curb your spending. Also, this could potentially lead to a better financial situation for many cardholders.
Credit Trend Four: More Branded Credit Cards
One of the more exciting credit card trends this year was the introduction of branded credit cards. Amazon launched it’s Amazon Prime Rewards Visa Signature, and Uber also launched the Uber Visa. Learn more about the Uber Visa credit card and other credit cards for ride sharing. Starbucks has released the Starbucks Visa.
These cards can help to inspire customer loyalty. Most of these cards come with incentives and rewards, and this appeals to people. If you frequent a company or store, you want to have additional rewards. These branded cards are a way for the retailers to give back.
Credit Trend Five: Credit Cards will be More Aesthetically Pleasing
When it comes to credit card trends, a more durable card could be an excellent option. Cardholders had a favorable reaction to metal credit cards, and there are more coming. Rosan Diamond is trying to appeal to a broad range of consumers with their new card. For $15,000, you can become the owner of a precious gem-encrusted custom credit card. For people with less extravagant tastes, the Uber card played with several colors that popped off the black background.
This can be a powerful marketing trend, and credit card companies recognize this. It is very likely this credit card trend will continue. You want to keep your eye out for different colors, materials, shapes, and sizes. This will evolve as the various credit card companies try to outdo one another.
Credit Trend Six: More Seamless Transactions
Smartphones make it easier for people to make transactions. It isn’t unusual for the majority of smartphone owners to forego their credit cards in favor of their phones. So, card companies are trying to make transactions smoother. They want to keep up with smartphones, and the cardholders will reap the benefits.
You should start seeing more ways to make purchases and redeem rewards directly with retailers. There should be apps popping up as well to shorten the transactions, and ways to redeem online. Lenders are designing all of these things to hold onto their customer base.
Credit Trend Seven: High-End Credit Cards will Have Bigger Perks
As far as credit card trends go, more perks are always welcome. People with higher rewards credit cards already have perks. However, there are projected to be much more for premium credit cards. American Express has already started this process, and it’s teamed up with SoulCycle. This partnership allows American Express to upgrade it’s already stellar perks.
This is a highly competitive market, and you can expect to see big payoffs. The sky really is the limit, and spa upgrades, first-class treatment, and more aren’t far-fetched. You may also see things like travel credits, more miles, exclusive VIP access, and bonuses.
Credit Trend Eight: Heightened Security and Fraud Protection
Data breaches have come to light several times over the past year; the Equifax Data Breach is a prime example. So this brought heightened public awareness, and lenders began to add heightened security measures. Discover lead the pack with cardholder credit card alerts linked to their social security number. As soon as a social security number showed up on the “dark web,” Discover sent an alert.
Capital One is also cashing in on these trends and heightening their security measures. Cardholders get access to Second Look, and this program lets them closely monitor their account activity. We also touched on Discover and MasterCard’s attempts to heighten security earlier in this post.
These Credit Card Trends Will Benefit Consumers in the Long Term
Cardholders will only benefit from all of the competition between credit card companies. Lastly, if your credit isn’t up to par, it’s time to start working on it. This will give you the best chance of cashing in on these credit card trends from the beginning.
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