Creditnet News Story

Mintel reports credit card offers on the rise

Wednesday, December 2, 2009

By Thomas Astery

Mailings show 'significant' increase for first time this year.

A recent report indicates credit card offers are back on the rise, which may be a sign that the economy is starting to improve.

According to Mintel Comperemedia issuers mailed out 180 million credit card offers in October, which is a 34 percent increase over the 134 million offers shipped out during the previous month. The level seen in October is the highest seen since December of 2008 and also represents the first "significant" rise in mailed credit card offers for this year.

"Credit card mail volume is still down significantly from a year ago, but October's sharp increase is an excellent sign for the industry," Andrew Davidson, a senior vice president with Mintel, said. "With recent green shoots of economic recovery, card issuers feel more confident about the future."

Many economists have noted that the recent increase in gross domestic product is an indication that the country is seeing improvements in its financial situation. As a result, more lenders may feel comfortable sending out credit card offers.

During the recession, however, lenders were more careful when it came to sending out credit card offers, especially because they were trying to decrease their exposure to consumers with a risky financial background.

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