As a smart consumer, it is up to you to remain up to date on the happenings within the credit card markets. One way to do this is to watch the news and interpret what it will mean to you, personally.HSBC Holdings PLC announced that it would be selling off its United States credit card division to massive Capital One Financial Corp. The sale gives HSBC the ability to focus its assets on more of the emerging markets it is hoping to move into. The company will profit by some US $2.4 billion in after tax gain from the sale. The move is a good one for Capital One, too, experts say as it will add considerable profit to its already strong bottom line.Capital One will expand, especially after its recent acquisition of the online banking giant, ING. Even as US growth caps continue to be limited, the deal will help to keep Capital One profitable longer.What does this mean for consumers who have HSBC credit cards? How about those with Capital One? Consider the following.
Most people will not see any difference or change in their credit cards. Capital One is likely to allow HSBC consumers to retain their current card offers, at least for some time.
If changes occur, it is likely to be to move all consumers towards the Capital One cards, at which time most consumers will see no real change in its card offerings and terms.
It is possible that HSBC customers will move into new Capital One accounts down the road with different terms. However, new laws make it a requirement for individuals to learn about such changes before they occur (you get warning of any changes coming.)
Keep in mind that as a customer, if drastic changes were to occur, you could opt out of the card offer. However, you would need to pay the balance on your accounts in full according to the terms you did agree to.Most consumers will not see a change in their overall credit card usage. Your HSBC credit card accounts will still work and may even be readily accessible for years to come. If you are worried about the move, do consider turning to a third party provider for a new credit card. You always have the ability to find a new loan offer if the one you have is simply not providing you with the terms and features you need.