Chase Credit Cards Court Business and Wealthy Clientele
Well, as another sign that we are indeed finally beginning to recover from this horrendous recession that we’ve been mired in for the past several years is the fact that an interesting competition is brewing between American Express and J.P. Morgan Chase.
At stake is the credit card business of wealthy consumers, small businesses and corporations, the niches that have long been dominated by American Express. Chase credit cards now want to actively move in and give AMEX a run for their money.
This market is at the same time very lucrative and thought to be less risky. As we all know credit card companies have been burned in a big way by giving credit cards to clients with less than stellar credit ratings.
It got to the point where it seemed as if all that was required to get a credit card was a pulse. At one point Bank of America was actually issuing credit cards to illegal aliens.
The fact of the matter is that because for the most part American Express and Chase both wisely avoided the subprime markets they are now both positioned rather strongly to take advantage of the economic recovery that, while slow, looks to be taking shape as I write this.
All other credit card companies, namely Bank of America and Citigroup, continue to struggle with losses and record defaults because of their huge exposure to the subprime market and government bailouts that need to be repaid, Chase and American Express credit cards are positioned well to take advantage of the improving economy.
It will be interesting to see how this competition unfolds. While www.creditcardcandor.com has no dog in this fight, we most certainly are cheering for a recovery to take place… and have been for quite some time now.
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