Estimated reading time: 3 mins
As a consumer, I’m sure you’re already aware of the tricks credit card companies use to encourage us to spend more. Over the past few decades, these tactics have become increasingly sophisticated and difficult to spot. In this article, I’ll outline some of the most commonly used tricks that credit card companies employ in order to get us to part with our hard-earned cash.
Rewarding Who?
One of the simplest methods that credit card providers use is offering rewards for using their cards. These can range from cashback on purchases or points which can be exchanged for goods or services. The idea here is that customers will be incentivised to use their cards more often if they feel like they are being rewarded for doing so. This scheme certainly works, as research has shown that people who are offered rewards tend to be willing to pay more than those who are not.
Not so Special
Another way in which credit card companies try and get us spending more is by offering us “special deals”. These offers might include lower interest rates or special discounts on products or services when we use our cards for payment. Again, this works because customers are enticed into making purchases by what looks like a good deal at first glance – only later realising that they’ve been tricked into spending more than they intended!
In Your Face
Credit card companies also rely heavily on advertising campaigns designed to make us feel like we need whatever it is they’re trying to sell us – even if we don’t actually need it! By employing clever marketing tactics such as emphasising convenience or luxury, they can persuade even the most frugal of shoppers into parting with their cash.
Promotions
In addition, credit card providers also like to target certain segments of society with tailored promotional offers and incentives. For example, young people may be offered cashback on clothing purchases whilst students could receive discounts on textbooks or other course materials when using their cards for payment. This strategy works because it makes potential customers feel like they are getting something out of using their card – even if it costs them money in the long run!
Limit?
Lastly, one of the oldest tricks in the book when it comes to getting people spending more is by increasing your credit limit without you realising (or asking). While this might seem helpful at first glance – giving you access to funds when you need them – it can also result in overspending if left unchecked and unmanaged properly. Therefore, it’s important for consumers to keep an eye on their monthly statements and ensure that any changes made by their provider have been authorised by them first!
Summary
To summarise, there are a number of different techniques which credit card companies may employ in order to get us spending more – from offering rewards schemes through advertising campaigns and targeted promotions all the way up increasing our own personal limits without permission! All these strategies work because they tap into our emotional needs and desires – making us believe that we “need” something before realising too late how much money we have actually spent! It’s therefore essential for consumers today to stay informed about these tactics so that they can make better financial decisions – both now and in future!
