8A Solving The Problem

In the environmental food chain, the predators’ sole purpose is to find a prey and conquer. Credit card companies operate in a similar perimeter. Credit card companies’ main priority is the collection of profit from consumers through interest by unfulfilled account balance payments or by collecting yearly annual charges solely through the use of credit cards.  Credit cards with annual fees are perceived as exclusive, enticing customers who value rare commodities for the pleasure of boasting and flaunting to peers. Credit card companies’ normally target elite customers, better known as big spenders. Big spenders mean an increase in purchases therefore an increase in revenue for credit card companies.

Select consumers value credit card rewards greater than the financial loss associated with yearly annual fee charges. However, credit card companies’ customer demographic is expansive exceeded the sole title of big spenders. Credit card companies have a plethora of customer demographic from big spenders to frugal customers. Credit card companies should take into consideration customers who present reliable credit history, payment history and utilization ratio.

The opportunity I wish to implement would augment the original format of modern-day credit. Credit card companies should waive the annual fee charge for customers who possess no financial liabilities toward credit card companies. Annual fees should be charged for customers whose credit history causes plausible questioning from credit card approval analyst. The credit bureau should offer a service, where customers are labeled through a hierarchy rated bad, fair, good, and excellent. Consumers with a credit report deemed good or excellent, with on-time payments and low utilization; annual fees should be waived. The remaining groups decision should be determined by a mixture of factors, whereby paying either a portion or the full annual fee. This service will push for customers to second think before applying for credit cards by improving credit history prior through on-time payments and low utilization ratio. Thus, pushing customers to pursue a more successful financial portfolio for future pursuits. Therefore, credit card companies gain a more reliable group of customers.