Credit Card Rewards Still Strong
Credit Card Rewards Remain Robust
Remember when credit card companies were lobbying Congress to water down the bill that eventually became the Credit CARD Act of 2009? One of their arguments was that the legislation would undermine their business models so much that they’d be forced to cut back their rewards programs.
Well, the resulting credit card regulation has largely been in effect for some time now, and guess what? Credit card rewards are booming.
Credit Card Offers Take Off
Mintel, a specialist company that tracks direct marketing activity, said last Thursday that American consumers received 1.1 billion credit card offers in the mail during the second quarter of 2010. That compares with 419 million during the same period last year. And, of those mailed during the later period, 80 percent featured rewards programs.
Andrew Davidson, a Mintel Comperemedia senior vice president, commented:
It wasn’t long ago that we were speculating about the return of annual fees, the disappearance of teaser rates and the watering down of rewards programs, as card issuers attempted to maintain profits in the face of restrictive new regulations. As the dust settles on the CARD Act, we continue to see evidence that this isn’t happening.
Credit Card Rewards–Changing Trends
On Monday, the New York Times pointed out how some credit card companies are re-engineering their rewards programs. In particular, offers for credit cards that provide frequent flier miles are now coming up with some very attractive deals, including access to lounges, free bag check-in, and industrial quantities of introductory bonus miles. These can be great if you travel a lot.
However, the Times suggests that this new generosity may be a response to growing disillusionment among frequent fliers over the difficulties many encounter when redeeming miles on popular routes at busy times. This may be forcing credit card companies and their partner airlines to up their games.
Cash Back Credit Card Deals
The following day’s Times carried another article about credit cards, and this one quoted an industry expert who said that many may be better off with a cash back card than a frequent flier one. His reason? Airlines seem more ready to tinker with their programs. The expert went on to say, “With cash back there’s much less risk of the redemption level changing before you redeem your reward.”
Disclaimer:The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we cannot guarantee the accuracy of the information in this article. Reasonable efforts are made to maintain accurate information. See the online credit card application for full terms and conditions on offers and rewards. Please verify all terms and conditions of any credit card prior to applying.
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