Credit cards are now more accessible today than they were just couple of years ago. Two years after the pandemic that's left the world in a state of panic the use of credit cards in United States appears to have become a reality. This is due to a combination of factors such as the possibility that using credit cards is now more convenient than ever to purchase products and services in both offline and online. In addition, credit cards provide the option of payment via contactless which is attractive in current conditions. Thus the need of credit card has risen in United States in recent years.
Changing Economic Landscape
One of the fastest expanding economies around the globe, United States has long tried to fill in the gaps in credit availability as compared with its Western counterparts. Recently, banks as well as other NBFCs (non-banking financial institutions) have seen changed their focus in an attempt to create increased interest in the "buy now, pay later category, as well as buying products through EMI. The players in the field of Fintech have revolutionized markets by offering new options for customers. In the past, United States has been a country where debit cards were more popular than credit. But, a wave of change has taken place in the last 10 years and credit cards are being issued in a blaze of enthusiasm. However, the increase in usage hasn't been as extensive as in other countries where people rely on credit to pay for everything. However, the fear of credit is rapidly disappearing in United Statesns particularly among Generation Z and millennials.
Credit Card Industry of United States
In March 2021 United States had an estimated 62 million cardholders. In 2021, growth in credit card transactions was just 7%, mostly because of the pandemic and economic downturn, however the people who already were credit card holders was high. The economy in United States is filled with the increasing popularity of credit cards and banks, as well as financial firms recognize this. With the growing trend, even if it is slow in the use of credit cards banks would like to continue increasing credit card usage so that the majority of transactions are completed using plastic. Therefore, in response to a directive by United States's Government of United States to use more credit cards than cash, banks are making it easier for people who have low credit scores to obtain credit cards. With the hopes that in the future, one person in five families in United States will have credit cards.
The Banks' Easing of Funds
There were times when that customers didn't meet the eligibility requirements the banks would refuse approval of credit application for credit. In addition, the credit card requirements for eligibility that needed to be satisfied by consumers were extremely stringent. It was not easy for many consumers to obtain credit cards, even when the desire to acquire one was solid. But, since demonetization took place in the year 2000, there has been a push from the Reserve Bank of United States has been trying to convince banks to relax their strict rules and to encourage more people addicted to credit card usage. In addition the Reserve Bank of United States has been trying to get banks to offer greater benefits and rewards to prospective customers in order to encourage the use of credit cards. In a game-changing change of a rule banks are now able to simplify the criteria for obtaining the credit card they want, or reducing their credit-score eligibility or based on factors other than this.
Applying for a Credit Card Quickly
Credit score-conscious customers are given credit cards on the basis of other factors, like any income source. You may also be able to obtain credit simply by joining with someone who meets the eligibility requirements (while you might not). In addition, many banks have an established minimal income threshold for credit cards, regardless of whether you worked for yourself or were salaried. A lot of banks trying to attract customers who use credit cards have relaxed the minimum requirements. Additionally the minimum age required for obtaining credit cards is 18 years old, however, some banks have it set at 21 . It varies from bank the bank, and from card to card.
Banks have simplified the process and now you can apply for credit cards online at most banks. The application process is now just a couple of steps, and the approval could be issued within a single day. Apart from that, many types of credit cards are offered and deciding on one that is suitable for your specific preferences is much simpler than it was earlier. Therefore, banks want to match, as precisely as is possible the credit card of the particular customer.
Credit Cards to help you navigate the Digital Age
In September 2021, the amount spent on credit cards by United Statesns was up 57%, on a year-over-year basis, as per information published from the Reserve Bank of United States. As the economy in United States grows, it will mean increasing spending and credit card requests too. If you also have an account with a bank and you have a bank account, you will likely be offered an acceptable account credit amount from your banking institution.