Will Credit Cards Become Unfashionable in 2009?

DALLAS, Dec 28, 2008 / FW/ — The Platinum Card has been the fashionista’s BFF for a very long time because how else can you get that new Versace bag or new Jimmy Choo stilettos immediately when they hit store shelves. But, it seems that more and more are leaving the platinum card at home while they pay cash for purchases.

A poll conducted by Bankrate revealed that 40% of consumers said they would not be upset if their credit lines disappeared. In fact, 32% of those polled said that they will probably charge less in 2009. A very small group, about 5% responded that they would be devastated with the loss of access to their credit cards.

According to Bankrate, consumers also weighed in on credit card company terms and regulations and taxpayer bailouts to consumers in credit card debt. Key poll findings include the following:

— Most people (72 percent) emphatically disagree that credit card companies are entitled to change the terms of your account at any time for any reason, and nearly the same number (71 percent) strongly believe that credit card companies should be more closely regulated.

— Two-thirds of Americans (67 percent) say they strongly disagree that taxpayers should bail out consumers who find themselves in a big financial bind due to credit card debt.

— Only 6 percent of Americans report their line of credit was decreased. A whopping 44 percent say their line was unchanged; 41 percent say their line was increased.

— In looking to future use of credit cards, nearly one-third (32 percent) of respondents say they will probably charge less next year, while half say they won’t change their usage. Only 1 percent plan to charge more and 15 percent say they don’t plan on using credit cards at all in 2009.

— When asked to pick the single biggest reason they use credit cards, 40 percent say it is more convenient than paying with cash, and 19 percent say they use them to finance emergency expenses.

The poll is included in this month’s segment of Bankrate’s Financial Literacy Series: Fast track to becoming credit savvy. To view Bankrate’s Financial Literacy 2008, go to http://www.bankrate.com/financialliteracy.