Providing credit is once again an attractive option

After 2008, most financial institutions have been very careful about providing credit to potential customers. This trend is however changing as a result of the obvious signs of economic growth, and lending to clients have once again become very attractive. An announcement has been made by General Electric that plans have been made to sell a significant part of their credit card unit during a public offering. This is just one of the emerging signs that credit cards are once again significantly more popular after the downward spiral of economic conditions which began in 2008. This new initiative by General Electric, one of the largest issuers of credit cards in the US is largely welcome, and some of the retailers making use of this system are Walmart and JC Penney.

The advantages of a growing economy

Hundreds of thousands of new employment opportunities have been created in the US over the last 3 to 4 months, and this has definitely contributed positively to a healthier economy. The improvements in the economy have been duly noted by financial institutions, and therefore, they are more willing to provide credit to qualifying clients. The latest statistics has clearly indicated a more responsible attitude from customers and a markedly growing number of customers are paying their credit repayments on time. Because of these positive indicators, financial institutions are taking a more lenient stance in relation to credit. The fact that more creditors are acting responsibly by paying their credit repayments is a clear indication that the economy is entering a new phase.

Bad credit is on the decline

Financial statistics show that during 2009, an astonishing 8% of creditors were not honoring their repayment agreements but this has decreased to just over 4% during last year. The same thing happened to cases where loans have been written off because they were deemed uncollectible. At one time, over 11% of loans were written off, but now, that figure has dropped to a mere 4%. All of this has caused a surge in credit related profits which has been generated during the last year. Lately, there has been a definite increase in the amount of credit that has been allocated. In 2012 for instance, the outstanding credit was almost $100 billion, but the tide is definitely turning. Many institutions that are in the credit card business have seen significant increases, and in some instances, even as much as 80%.

Attractive options

Many of the popular credit cards like the GE Visa of New Zealand are offering cardholders a substantial amount of benefits which could be beneficial to the consumer. Being credit worthy can be extremely important both to a private individual and to a business entity since it allows for more freedom when dealing with financial matters. The Gem Visa is extraordinarily simple to use, and the applicable rates and charges are very reasonable. Several security technologies have been incorporated into this card thereby making it one of the safest cards to use within the industry. For those who are still concerned or uncertain, it is possible to obtain insurance in case of possible fraud or theft.