There has been a great deal of competition in the loans and credit card industry in recent times and it appears as though the market is actually growing. This probably isn’t a surprise because there are many people looking for additional finance and support. The figures suggest that the loan rates are falling and that the average balance transfer term is on the rise which adds up to a greater degree of confidence in the market. Obviously everyone needs to focus on the individual impact it has on them but at the moment, there is a lot to be said for this being a positive time for borrowers.
When it comes to credit cards, the fact that introductory 0% balance transfer terms are on the rise again has to be seen as a good thing. There are a number of things to take on board when it comes to balance transfers and not everyone is treated in the same way, but this is why it is of benefit to look at the average terms. For people who have a good credit score and who would be deemed as being a safe bet for a lending company, there is an indication that 40 months of interest-free balance transfers are available.
This will clearly just be available to a limited number of people but the fact that it is available at all has to be seen as a positive thing. There are many people looking for signs that the economy is improving and that there is a greater degree of support on offer for people. These small movements in credit card offers and loan options may be an indicator that things are starting to move in the right direction. Of course, there is also the argument that it may be the lending companies looking to force the issue and convince people that now is the right time to take out credit.
Lenders Want People to Take Out Credit
This may be the case, but if it does result in more people taking out credit, the end result is the same. There are different schools of economic thought and there are plenty of advocates of the need to stimulate growth and move the economy forward.
In addition to improvements with respect to introductory offers and balance transfers, it also seems that loan firms and credit card companies are going further to entice people over to what they offer. There has been an increase in the level of reward schemes and cash back offers available to people. These are important factors and they may have a big impact on whether someone decides to take out a loan or a credit card or not.
It may be something that some people and experts are uncomfortable with but there is a high level of competition going on in this industry and firms need to be seen as a better option than their peers.
Advertising isn’t as Crucial as it Once Was
It is also important to note that advertising isn’t as important a factor as it once was. Clearly there is a lot to be said for being seen as a leading company and having your offer out there in front of people but people are deciding on what the offer is. If you have a poor offer, all of the marketing budget or advertising spend in the world won’t make a difference. This means that lenders are having to compete in other ways and the consumer is choosing the option that is best for their needs.
This means that the lending companies need to look for ways that appeal to users so low introductory offers, cashback schemes, rewards and anything else which helps people to save money while improving their finances has to be seen as a positive thing.
There is obviously a level of concern about people being enticed into taking out loans or credit cards when they don’t actually need them. This is why many people feel that lenders shouldn’t be allowed to compete on these terms. However, if someone is looking for loan or finance, being able to achieve it at a more affordable rate has to be seen as a positive thing, and you can see why these companies are so committed to providing loans in this manner.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.
