How the credit card market has evolved

The credit card market is huge. Indeed, according to 2007 statistics, there are over 1,300 providers and 30 million credit card users in the UK alone. Offering a convenient and flexible method of payment, they are a great way to manage your money, as well as being essential for establishing your credit record.



As it goes, credit card usage has grown exponentially over the last decade. In fact, figures indicate that on average, over 100 million transactions are made every month. The rise in online shopping has also been a contributory factor, with many people choosing the practicality it offers over heading to the high street.



The year 2008 has been no exception, with figures for credit card spending having risen from 2007. And, although there was a slight dip in numbers of transactions around August, on the whole, credit card usage has steadily increased.



Most notable, is that the number of transactions for the first six months of 2008, which amounted to 967 million, rose 0.2 percent from 2007. Additionally, the month of September saw a big increase in both transaction numbers and value of transactions, with figures having risen 10.5 percent and 9.2 percent respectively over the last year.

Not only that, but in the run up to Christmas, it is expected that over a fifth of consumers will use their credit cards to finance such things as presents and extra food shopping. Indeed, if used wisely they are very useful for spreading the cost of larger payments over a more manageable period of time, and they can offer the user some beneficial rewards.



The credit card market has also seen some great deals offered over the last year, which have served to attract more people to open up such accounts. Indeed, it is now possible to use your credit card to reap some beneficial returns.



For example, it is possible to receive great introductory incentives, such as 0% on balance transfers, low rates of interest, or cash back on purchases made. Loyalty schemes have also taken off in popularity, meaning it is possible to earn points or airmiles when you spend on specific cards.



It is important to note however, that you should avoid being sucked into a credit card deal purely based on the incentive offered. It is instead worth taking the time out to establish your spending habits, in order to find the most lucrative one for your circumstances.



Since its inception, the credit card has provided users with many benefits. Based on recent statistics, there are an increasing number of people using them to help with the costs incurred through daily life. This year in particular has seen some enticing deals available, which has worked towards better meeting the needs of consumers, and their finances.



This article has been written for information and interest purposes only. The information contained within this article is the opinion of the author only, and should not be construed as advice or used to make financial decisions. Expert financial advice should always be sought and any links contained within this article are included for information purposes only.