22 November 2007
The market share of USA Internet searches for "credit cards" nearly doubled (+98%) in the past four weeks, searches for "credit cards" experience a fairly predictable pattern with peaks in August and in November with the November peak being the larger. The likely reason for this is predicted holiday spending.
Given the current sensitivities in the financial markets, particularly to lower income borrowers, the increase in credit card searches might not come as a big surprise. Further emphasising the financial woes, among the top non-branded searches for credit cards are "credit cards for bad credit" and "bad credit credit cards". HSBC today cited losses from credit cards as well as mortgage backed securities and is not alone in those disappointments.
The most searched for brands for credit cards in the past four weeks were Chase, Capital One, HSBC, Walmart and Visa. Capital One is the brand to watch with the share of USA Internet searches for "capital one credit card" almost doubling (+96%) year on year last week.
Search data indicates that consumers may be planning to fund more of their holiday shopping on credit than in the past. If the banks tighten the reins, retailers will be the first to suffer.
Keep up to date with industry and Nomensa news by signing up to Nomensa newsletters.
