New Trends Emerging with Credit Card Offers

March 7, 2012, Written By Lynn Oldshue

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Two new trends are emerging in the credit card industry, and a new card
from Barclays will try to attract cardholders by incorporating both of these

The first trend is issuers introducing no frills credit cards which have no
rewards, only lower interest rates. These cards are directed at “revolvers”,
customers that carry a balance. Revolvers need to have a card with the
lowest possible APR so they minimize their interest payments.

Barclaycard Ring is being tested with some customers and will be available
to the market later this spring. The card has an 8% APR that applies to
purchases, balance transfers and cash advances. There is no annual fee, the
late fee is a maximum of $25, and the foreign transaction fee is 1% (most
issuers charge between 2% and 3%). The cash advance fee is only $1 per
transaction (most cards charge a 3% fee for cash advances and an interest
rate of 20% to 25%). The card has no rewards or special introductory rates
on balance transfers, attractive features commonly found with other cards.

Some major issuers have introduced cards in the past year directed at this
no frills audience. Citi introduced Simplicity, a card with no annual fee,
penalty rate or late fee. The card has no rewards and a relatively low APR.

Slate from Chase has a 0% introductory rate on purchases and
balance transfers for 15 months. There is no balance transfer fee if you
transfer a balance within the first 30 days of your account opening.

The second credit card trend seems to be a movement toward
incorporating social media with their customers, and the new Barclays
card wants to take this to another level. Cardmembers will have an
opportunity to see the card’s financial profit and loss statements.
Using social media, cardmembers will have a voice in how the card
is managed and serviced. Consumers will be asked for their input
several times per year. The company claims customers will share
in the profits of this card. but the details of this feature are unclear.
The fine print says profit sharing is not based on the actual profits
of the company. Instead, the profit sharing will be based on a
calculation that will be used to determine what will be shared.
It is offered at the sole discretion of Barclaycard and can be
discontinued at any time.

“The low APR and fees and profit sharing are good features for consumers.
Some people may wonder why all cards can’t offer these types of rates and
fees,” says Bill Hardekopf, CEO of “Barclays has reduced
the expenses on this card by eliminating all rewards. In addition, they are
hoping to create awareness through social media, and therefore, limiting the
money spent on advertising and promotions.”

This entry was posted in Credit Card News and tagged No tags added

The information contained within this article was accurate as of March 7, 2012. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.

About Lynn Oldshue

Lynn Oldshue has written personal finance stories for for twelve years. She majored in public relations at Mississippi State University.
View all posts by Lynn Oldshue