Photo: Andres Rueda via Flickr
I’ll keep this brief. Enough has been written today about the Dow’s disastrous 600+ point decline.1. Expect higher credit card interest rates in the future.
2. Your access to credit could be limited in the future — this means it could be harder to get approved for a good rewards credit card.
Banks will be hesitant to expand their credit card marketing in this uncertain market, and for this reason I’ve begun advising Outlaw‘s readers to take advantage of the lucrative card offers out there now, rather than later. (Click here to see this week’s top credit card deals.)
Additionally, the large American banks have been hard hit by the stock market sell-off, with billions of dollars in shareholder value erased in a matter of hours.
Citigroup Inc (NYSE:C) declined more than 15% during today’s session.
Bank of America Corp (NYSE:BAC) lost more than 20% of its market value.
Even industry leader JPMorgan Chase (NYSE:JPM) took a hit, with its stock down 9.23% as of Monday’s market close.
I simply cannot imagine these top credit card issuers would be likely to pump money into new credit card promotions or sign-up bonuses when they face such drastic loss of value, and there’s complete uncertainty as to whether the US will fall back into recession — if that occurs, you don’t want to risk giving unsecured credit lines (e.g. credit cards) to your customers.
Again, if you are in the market for a new credit card this summer, I’d start looking now. I can’t guarantee you that card promotions will dry up — who knows at this point — but this level of uncertainty is definitely not good.
Remember how the credit card promos you received in the mail virtually dried up and disappeared altogether at the height of the financial crisis? We could see that again later this year.
— provided by Outlaw; see more deals in our card offers portal.
Disclosures: We’re a credit card offers site, so obviously we maintain financial relationships with numerous banks and financial institutions, including some of the card issuers mentioned in this article. No relationship or position on Bank of America, Capital One, Citigroup, or JPMorgan Chase at time of publication.