Credit Card Offers Signify an Economic Recovery

There was some very good news reported last week for our economy and most people probably missed it. There may very well be an economic recovery happening right now and the evidence of that could be in your mailbox.

I’m speaking of the number of credit card solicitations sent out by credit card companies to consumers. Believe it or not there is a company called Synovate that tracks the number of credit card offers sent out to American consumers through the mail.

Typically in good times credit card issuers are very aggressive when it comes to looking for new customers. Conversely, when times are bad, which they have been for the last two years due to the economic recession, the credit card companies will reduce the number of solicitations that they mail out.

Synovate Reports that while there was a 6% reduction in the number of offers mailed out in the first quarter to the second quarter of 2009, compared to the double-digit percentage declines we have been seeing from quarter to quarter that is a marked improvement.

In the second quarter of 2008 credit card companies mailed out an astounding 1.06 billion solicitations to consumers. Since that time credit card issuers have consistently been reducing the number of mailings sent out each and every quarter by double-digit percentages.

Synovate reports that there was a 44% drop in credit card offers mailed out between the end of 2008 and the first quarter of 2009.

The report further stated that in the second quarter of 2009 which ended on June 30th, the number of credit card offers mailed out was 349.1 million which represents a 6.2% decline when compared to the first quarter of 2009. That is a substantial improvement when compared to the double-digit declines that we have previously seen.

Some of the major credit card issuers have really stepped up their marketing activity. Citibank, increased their mailings by 65% sending out 56.1 million solicitations. Bank of America mailed off 55.2 million solicitations in the second quarter which is a 77% increase from the first quarter.

I personally have not received any credit card offers in the mail but my good friends at American Express reached out to me last week. They sent me a letter saying that they are going to increase my interest rates. But that my friends, is a story for another day.

Related Information:

  1. Credit Card Marketing Activity Increases In what can only be seen as a good sign for the economy as a whole, it was recently reported that credit card marketing activity has increased. A Chicago-based company…
  2. Annual Fees on Rewards Cards Increasing Rewards credit cards are very popular with consumers. They are also becoming increasingly more expensive. These types of credit cards that offer rewards and rebates in the form of cash…
  3. Capital One Financial Corp Reports A Record 4th Quarter Loss Capital One Financial Corp. is the parent company of credit card behemoth Capital One. It also has recently gotten into the branch banking business by buying Louisiana based Hibernia and…
  4. Credit Card Companies Marketing On Campus Credit card companies have aggressively marketed to students for many years now. But apparently that in your face marketing strategy has reached critical mass at some college campuses. Michigan State…