People use credit cards for different purposes depending on how they manage their finances. Some people use credit cards frequently for purchases while others use credit cards for emergencies and unexpected expenses.
You may think that people with different consuming habits will demand different types of credit cards and you are right. There are different types of customers demanding different types of credit cards and that determine the market trends. In this article we are going to talk about the most requested credit cards in the US. But first, let`s talk about the US credit card market
US credit cards market
The US credit cards market is dominated by few companies that control the majority of the market but there are plenty of companies that offer products. The top 10 companies that offer credit cards issued almost 90 percent of the credit cards in the US and the top 4 controls more than 57 percent of the market. That means that the US credit card market is highly concentrated in few issuers.
There are four credit card networks that are the most used the most by issuers, they are: Visa, Mastercard, American Express and Discover. Visa have 545 million credit cards in circulation in the US (in 2014); Mastercard have 191 million credit cards in circulation in the US in the same year; American Express have 54,.9 million credit cards in the US in 2014 and there is no exact number for Discover but it is lower compared to the others.
The top credit cards issuers are (in the final quarter of 2014): Citigroup (17.8%), JPMorgan (15.2%), Bank of America (13%), Capital One (10.3%), American Express (7.7%), Discover (7.1%), Synchrony (5%), Wells Fargo (3.9%), Barclays Delaware Holdings (2.6%) and U.S. Bancorp (2.3%). So there is a high concentration in the top 4 but no company can control the market. (Source: PaymentsSource)
Most requested credit cards in the US market
In first place, we have BankAmericard Cash Rewards Mastercard which has a variable APR (15.24% – 25.24%), an introductory APR of 0% on purchases for 12 billing cycles and there is no annual fee. You will have $200 cash back rewards bonus if you spend more than $500 during the first 90 days with the card. There is 1% cash back in all purchases, 3% during the first $2,500 in grocery stores and wholesale club/gas purchases and then it will be 2% cash back. You need to have a good credit score and credit history to be able to get this credit card.
In second place, we have Discover it Card which is popular as a general purpose credit card. This card has a variable APR (13.99% – 24.99%), there is an introductory 0% APR during the first 14 months with the credit card and there is no annual fee.
You will earn 5% cash back each quarter in places like grocery stores, restaurants, amazon.com, gas stations and 1% cash back in all other purchases. You will have access to Freeze it which is a mobile app that allows you to manage your account and activate or deactivate it.
In third place, we have Capital One Venture MasterCard which has a variable APR (15.24% – 25.24%), there is no introductory APR and there is a $95 annual fee. However, you will have a big sign-up bonus; you will get a 50,000 miles bonus ($500) if you spend more than $3,000 on purchases during the first 3 months with the credit card. You will earn 2X miles on every purchase and up to 10X miles if you use the credit card in some hotels. There is no foreign transaction fee. This credit card is ideal for traveling because of the rewards and the 0 transaction fee.
In fourth place, we have American Express Blue Cash Preferred which has a variable APR (15.24% – 26.24%), there is an introductory 0% APR on purchases and balance transfers during the first 12 months with the card and there is a $95 annual fee.
You will receive $200 back if you spend more than $1,000 with the credit card during the first 3 months with it. You will receive 6% cash back in purchases in all US supermarkets and if you spend more than $6,000 then it will be 1%; you also get 3% cash back on US gas stations and 1% in other purchases.
In fifth place, we have Citi Double Cash Card, this credit card has a variable APR (15.74% – 25.74%), there is an introductory 0% APR during the first 18 months with the card and there is no annual fee. You will earn 2% cash back on purchases; there is a 3% balance transfer fee and 3% foreign transaction fee.
This card has a penalty APR (up to 29.99%) and you need to have a good credit score and credit history to get it. The main aspect of this card is a long introductory APR period which allows card holder to borrow money without cost.
Last, we have Wells Fargo Cash Wise Visa Card which has a variable APR (16.24% to 27.24%), there is an introductory 0% APR during the first 12 months with the card and there is no annual fees. You will have 1.5% cash rewards in every purchase and have access to 24/7 fraud monitoring, zero liability protection, alerts and other security aspects that are a good reason to pick a Wells Fargo credit card.
As you can see, there are plenty of options in the credit card market. However, customers look for credit cards with rewards when they look to get one because they think that they are winning money from using the credit card. If you want to know more about the US credit cards market feel free to search information online.