Expect less direct-mail advertising and a lot more social media and targeted ads, plus a big push for nontraditional bank customers.
This post comes from Jason Steele at MSN Money partner Credit.com.
At a recent conference devoted to travel and credit card rewards, executives from Chase, Barclaycard, US Bank, Capital One and American Express were on hand to share their views on the future of credit cards — and there was a broad consensus on where the industry is going in the next few years.
Here are four of the biggest credit card trends on the horizon that emerged from the discussion:
1. Banks are leveraging Big Data. When you think about it, credit card issuers don’t just collect money, they also collect massive amounts of data. They know who you are, how much money you make, and where you spend it.
The next step is for them to provide offers that are directly relevant to customers. Think of the way that your grocery store uses a loyalty program to track your spending and offer you coupons at checkout, but then imagine that model extended across multiple merchants. That is what is implied by Big Data.
2. Card issuers will capitalize on mobile devices. Closely tied to their push to capitalize on their data, banks see a future where they can present these offers to their customers in real time. By combining location information and spending data, banks can present customers offers that they can act on when away from their computers.
The average debt load has grown by 30% in 5 years. Delinquencies rose by 22% in the same period. This spells trouble on many levels.
About to graduate and worrying about your debt load? You've got reason for concern. More than half of all student loan accounts are currently deferred, according to a study from the TransUnion credit bureau.
In other words: Half of college grads aren't earning enough to make loan payments.
That's not the only scary stat. The average student debt load has gone up 30% in the past five years, and 33% of the nearly $966 billion in outstanding loans is owed by the riskiest candidates.
Huge student loans, more education to fund, and easy digitized purchasing are among the problems plaguing this generation.
This post comes from Angela Colley at partner site MainStreet.
Generation Y — those born between 1981 and 1995 — carry less debt than the national average. But that isn’t necessarily a good thing.
Most of Gen Y’s members hold “bad debts” — like credit card debt and other loan products that don’t build assets. No one can conclusively answer why. Maybe it’s the job market. Maybe impulse buying and a digitalized consumer-driven society are to blame. Whatever it is, experts are wary those debt woes aren’t going to get better anytime soon.
While more than 60% of Gen X’s debt is good debt, such as student loans and mortgages, Gen Y is heading in a different path — 48.4% of Gen Y debt comes from non-asset building loans — bad debt — according to a recent study of over 20,000 users by the financial reward site, Saveup.com.
Flowers? Meh. Breakfast in bed? Well, OK. $50 gift certificate to Zappos? NOW you're talking to Mamma!
Whoops. Sunday is Mother's Day. And here you forgot to make reservations at her favorite restaurant. What now? Think fast!
Something more creative than flowers, but less cliched than breakfast in bed. Something quick. A gift card?
It's high season for moving (and getting ripped off) by shady movers. Learn the warning signs.
Rogue movers have long preyed on consumers who are seduced by a low price quote, and perhaps a flashy website.
The drug- and alcohol-free post-graduation event you and your school plan can be held with very little expense and still be memorable and fun.
This post comes from Myscha Theriault at partner site Money Talks News.
'Tis the season for parent- and school-sponsored Project Graduation parties to start taking place around the country. Not every community is a wealthy one, and the costs for chem-free events can easily spiral out of control if the planning committee isn't careful.
Follow these tips for a fun and frugal event teens will remember for years.
This is an easy area to not only overspend, but to purchase items graduates will have difficulty putting to use. Miniature photo frames and coffee mugs tend to make their way to the junk drawer quickly.
Consider key chain flash drives for party favors that are both functional and frugal. College-bound graduates will be able to use them for assignment storage, while military and vocational students will make use of them for mobile missions and job search efforts. Besides, what teen doesn't love a new key ring?
If you're paying full price at the box office every time you see a film, know that the people across the aisle may not have. What do they know that you don't?
With dinner and a movie easily costing upwards of $70, the stereotypical date night has been priced out of many peoples' budgets. Indeed, it's natural to wonder whether cheap movie tickets are just a relic of days gone by. In some cities matinee tickets go for more than $10 a pop, and IMAX, 3-D, and other special screen options often add on extra charges.
To give you some relief from sticker shock, we hunted down ways to save when going to the movies. Solutions come from startups, corporate promotions, and even from theaters that reward loyal customers.
Launched last July to help college students in Santa Cruz, Calif., afford summer movies, Dealflicks has since spread to theaters across the country.
The company helps movie theaters fill up seats that would otherwise sit empty by allowing them to discount ticket prices at the box office (exactly how much is at the theater's discretion). Through the company site or app you'll find cheap movie tickets at 15% to 60% off retail and bundle packages, such as two tickets/two drinks/one popcorn, for the same steep discount.
Dealflicks doesn't have an agreement with a big distributor like AMC, yet but the list of participating theaters is growing. The company's iPhone app also helps you locate participating theaters with discounted movie tickets nearby.
Another interesting app for iOS and Android has been released by Cinemark, which runs Century Theaters, CineArts, and Tinseltown. The app rewards moviegoers who refrain from using their mobile phone during the presentation.
Some traffic tickets can raise your auto insurance premiums by 22% or even more. Here's how various violations could affect your rates.
This post comes from Angela Colley at partner site Money Talks News.
But after you get a ticket and the squad car is pulling away, you have two very adult thoughts: "I wonder how much this is going to cost?" and "Oh no! What is this going to do to my insurance rates?"
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