Everyone is familiar with the credit card advertisements people receive in the mail, but direct mail marketing has declined in response to the struggling economic climate.
However, according to DM News, credit card issuers have ramped-up their direct mail marketing efforts recently. They are now sending out more advertisements to consumers, raising awareness about new cards and renewing interest in their popular cards.
The total amount of direct marketing sent out by all banks rose 47 percent between the third and fourth quarters of 2009, which is a significant change in only a few months. Chase led the pack by increasing its efforts by 87 percent.
Banks are becoming more optimistic about the future of the U.S. economy, and are once again encouraging consumers to take advantage of credit card offers. DM News reports that banks sent out far more direct mail before the recession hit, but a steady climb could bode well for the credit card industry.
Of course, credit card offers sent through direct mail might not be as enticing as they once were. Annual fees, shorter grace periods and higher interest rates are still common among current terms. It is important for consumers to pay attention and to make smart decisions about which credit cards they decide to obtain.
New changes to the CARD Act of 2009 will take effect in February, which might have an impact on direct mail marketing by credit card issuers. Banks will be keeping tabs on delinquencies and monitoring consumer activity to determine where they should take their efforts from here.
Staying abreast of credit card news and paying attention to direct mail advertisements will help you make effective decisions about your finances. If this trend continues, it could mean that card terms will steadily become more favorable as well.
