Now is a great time to pursue new credit card accounts. Especially if you currently have a strong competitive position in rate or rewards.
As we know, in an upward rate environment like we have now, credit card rates move up very quickly. APRs of 20% plus are common in these circumstances. For the credit card user, even a small increase can translate to much larger liabilities in the short and the long term.
Consumers are more aware of these higher rates as rate change notifications are sent out by the card issuers and other financial institutions.
The Balance Transfer — A Fast Way to Grow Balances and Accounts
That’s why the Balance Transfer program is an easy and convenient way for a consumer to transfer their credit card balances to you.
Most promotions we are beginning to see are offering a special reduced rate (like 3.99% or similar) on the balance that is being transferred over. Of course, the lower the rate the better as it might be the differentiator when deciding between two providers.
Targeting the Right Consumer
According to Money Geek, current average credit card debt levels are listed below. While average credit card debt is highest in the 75 + age group, they do not carry debt, meaning they likely pay off their credit cards each month. Those ages 54 and below offer a high potential return.
| Age Group | Median Credit Card Debt | Average Credit Card Debt | Percentage Who Carry Debt |
| Younger than 35 | $1,900 | $3,700 | 48% |
| 35-44 | $2,600 | $6,000 | 51% |
| 45-54 | $3,200 | $7,700 | 52% |
| 55-64 | $3,000 | $6,900 | 47% |
| 65-74 | $2,900 | $7,000 | 41% |
| 75 or older | $2,700 | $8,100 | 28% |
How to Promote
There are many ways to promote a balance transfer. Much depends on your budget and target market. Make sure your creative message and imagery speaks to the target market. Age-appropriate imagery is important. Key benefits of the program will vary depending on the age target:
• Younger – Reduce debt, save money, increase overall borrowing power
• Older – Pay down debt, put more money away for retirement, meet growing family needs
Preapproved Credit Card Offers sent to a targeted list via direct mail are one of the best options. Also using email offers to apply for a new credit card along with a link to a web splash page showing the Balance Transfer program details and an application. If you have a strong card program, always show a comparison of your card against the other competitive offerings.
Round out your direct mail campaign with in-branch merchandise and signage. Many companies also include incentive programs for front line staff efforts to generate the best results in selling credit cards.
You need to move quickly. If rates change again the opportunity may as well.
Thanks for joining me today!