Card Offers Up, Research Firm Says
A market research group that specializes in tracking card data said consumers are putting more on their credit cards now than at any time after the start of the economic downturn.
Synovate, the market research arm of Aegis Group plc, frequently tracks and analyzes card data.
"We are being repeatedly reminded that anybody betting against the U.S. consumer ends up on the losing side," said Anuj Shahani, director of competitive tracking services for Synovate's financial services group. "The 'Dr. Dooms' of the world may be underestimating this economy's recovery."
Shahani also said an increase in the number of card offers being made to U.S. consumers suggests that the credit card market fundamentals are strengthening.
Synovate reported that during the second quarter of this year, U.S. households received 640.3 million credit card offers, an 83% increase from the 349.1 million offers mailed during the same time a year ago.
The firm found that Chase Bank was the lead issuer, having increased its mailings fourfold over the same period in the prior year. Citibank, the second largest mailer, made a major comeback in the second quarter, almost tripling its mailings from the first quarter. Discover increased its mailings by 70% from the first quarter to the second quarter.
"Despite the uncertainty introduced by the CARD Act, Fin Reg, and other such legislative changes, we are seeing the credit card issuers get back to market, trying to entice consumers once again," Shahani said.