NEW YORK—U.S. credit card companies continue to ramp up and roll out new offers as they seek to grab market share amidst the economic rebound.
Online offers by companies seeking new customers increased 85% in May compared with May 2020, the Financial Times reported, citing data from its Competiscan arm.
Balances owed on credit cards issued by the country’s biggest banks fell between 9% and 14% for the first quarter of 2021 compared with the first quarter of 2020, according to the Financial Times.
Credit card companies are offering interest rates of 0% on transferred balances for up to 18 months, the Financial Times said.
“Balance transfers really are the engine that helps issuers keep outstandings on the books,” Jessica Duncan, director of payments insights at Competiscan, told the Financial Times, adding that those same customers tend to present greater credit risks, creating a challenge for the lenders.
Competiscan also found that credit card companies moved to expand borrowers’ credits three-fold during the first quarter of 2021 compared to the first quarter of 2020.