Northern, WI 1/12/2013 (WallstreetPr) –Credit Card issuers in a bid to woo their customers and reduce the default are planning to give one month extra which would mean customers won’t be charged with any penalty or interest if he or she defaults paying on time. Citigroup, Inc. (NYSE:C), Barclays and the Discover Financial Services (NYSE:DFS) are the first to foray into such scheme. Their scheme will definitely look very lucrative but may zap the borrower at a later stage. This looks more like a marketing strategy. The companies at the moment look like helping the borrower with additional time to save himself from debt trap.
The other Credit card service providers will soon follow the suit if the competition has to be maintained. However for the new Card subscribers these three companies have come with a good offer.
Shares of Citigroup, Inc. (NYSE:C) were down by 1.14% to end at $42.34
Shares of Discover Financial Services (NYSE:DFS) were down by 0.22% to end at $40.39
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