New Branded Credit Card Offers

A recent article from Reuters cited the recent trend by credit card issuers that are battling a rapidly maturing market for credit card products are making a concerted effort to differentiate their product offerings with a new spin on an old trick.

With spring and the home improvement peak season rapidly approaching, card issuers are looking to sweeten the terms and incentives for cardholders for home improvement projects. The strength and subsequent run-up in the housing market has left many homeowners sitting on large home equity windfalls.

And card issuers are anxious to reach out to those consumers who might be looking to upgrade their homes with substantial home improvement projects.  With the home improvement market rising in step with the strong housing market, Lowe’s Cos., the Mooresville, N.C.-based home improvement retailing giant just recently launched a Lowe’s branded credit card offer that provides consumers the ability to finance “bigger-ticket” home improvement projects. The “Project Card”, as it has been dubbed, has a purchase minimum of $1,000 and the card maintains an interest free offer for the first 6 months of card membership.

The card offers a much more convenient financing solution than a traditional home-equity line and also features credit lines up to $35K compared to just $10K for the traditional Lowe’s card.

I find it interesting that credit card issuers continue to ramp up their product offerings with these “unique” features when it seems obvious to me and everyone else that they’re merely trying to get in on the home equity land-grab that the banks and mortgage companies have feasted on over the last 5 years or so.

If it walks like a duck…