4 Important Credit Predictions for 2015

With the end of 2014 right around the corner, the credit card comparison website CardHub released its Credit Predictions for 2015 in order to give consumers a sneak peak in regard to interest rates, rewards, debt levels, mortgages and spending methods as we head into the New Year. Here are the top 5:

1) Interest Rates Will Rise But Remain Near Record Lows

The Federal Reserve has kept short-term interest rates near zero for some time now, and there is little reason to expect significant changes in this regard as we enter 2015, despite the Fed recently curtailing its bond-buying program.

2) Credit Will Be Increasingly Available

Experts predict credit to be in greater abundance in 2015, mainly due to the improvement of the economy and household balance sheets. In the absence of significantly higher interest rates, banks need to boost profits via credit. We will rack up $60 billion in credit card debt!

3)  Apple Pay Will Gain Market Share

The mobile wallet industry will gain some traction with consumers in the coming year. Thanks to the high-profile release of Apple Pay. Early returns have shown the system to be a success. More stores are planning to come online and Apple Pay-equipped devices will further permeate the market.

4) Chip Cards Will Make a Big Splash

More and more financial institutions are offering Chip-based credit cards and this trend is expected to continue. Part of the allure is the fact that U.S. markets have faced several high-profile data breaches. The more chip-based cards and chip card readers are on the market, the harder it will be for fraudsters to steal credit card information.

Want more? Read the full report. Want to discuss either buying or selling your home in Montecito, Hope Ranch and Santa Barbara? Call me, John, at (805) 455-1420 or my brother Bill at (805) 455-3030. Hope these credit predictions for 2015