Providian's New 7.9 APR Visa

Here's the article about the new Providian Visa:

By Lucy Lazarony, bankrate.com

Credit card companies are aiming for the top with new products designed for high-income customers.

Visa recently announced plans for a new Infinite card that targets the wealthiest 1% to 5% of consumers around the world.

Card perks include a limit of at least $20,000, 24-hour concierge service and a special Web service that includes travel information and news and special offers from the likes of Ritz-Carlton hotels, Avis Rent a Car, Galeries Lafayette and Burberrys of London.

"We are talking about affluent people, people who would represent the upper tier of any card market," said Patrick Di Chiro, a spokesman for Visa International. "Itâ??s a pretty demanding group."

Yet a person doesnâ??t need to be a world traveler with money to burn to demand more value from a credit card. "There is a great demand from consumers for more of a service-oriented product," said W. Christopher Staab, an associate at Auriemma Consulting in Westbury, N.Y. "Price is very important to them, but they want to know what value they can get from the card."

He points to the success of frequent-flier credit cards as an example. People are quite willing to shell out a hefty annual fee for the chance to earn free air miles.

Of course, the appeal of plain, old low rates cannot be denied either -- especially for people who tend to carry a balance. Providian is marketing a new low-rate card, specifically for people with big incomes who carry big balances.

The Providian card has an eye-popping no-interest, three-month introductory period. After that, the rate goes to a still-impressive 7.9%. Credit lines climb as high as $100,000. Only those with excellent credit are likely to qualify, and all potential cardholders are contacted by phone or through the mail.

Industry magazine Credit Card Management has reported that Providian is targeting people with incomes of $150,000 to $200,000 and card balances of $10,000 to $25,000. A Providian spokeswoman refused to discuss the cardâ??s credit criteria.

"People in that income level donâ??t have a reluctance with carrying a balance when it helps them with cash flow," said Jeff Baxter, president of SJ Baxter & Associates in Forest Hill, Md.

"The merchant acceptance has increased so much. People find themselves putting more and more on the card," Staab said. "Years ago, people who had those income levels may have taken out personal loans."