Credit Cards with Cash Perks are Becoming More Prevalent
Yahoo News reports that there has never been a better time to take advantage of credit cards with cash perks, as banks and credit card companies are ramping up rewards programs and maximizing cardholder benefits.
“We’re seeing higher rewards than ever,” says Matt Schulz, a senior credit industry analyst. “Issuers are really eager to acquire new customers and hold on to their current ones.”
New and improved rewards programs seem to be more readily available across the market, as well, with perks growing for both upper-tier cardholders and those with below average credit scores. In November 2015, Chase implemented a permanent increase in introductory rewards for all new cardholders – 50,000 points available to anyone spending $4,000 in their first three months with a Chase card. Card companies targeting affluent travelers, like Capital One, are also increasing cash rewards for existing and new customers.
Industry experts expect the trend to continue, especially as banks feel the strain of fewer applications for other types of credit, including home mortgages.
“Banks have been under a lot of revenue pressure in other areas and credit cards are profitable,” says Bill McCracken, CEO of Synergistics Research Corp.
Card issuers are also facing more competition from PayPal and similar alternative payment businesses that make it safe and easy to pay for goods and services straight from a bank account. For this reason, companies like American Express are targeting consumers who traditionally don’t have the credit scores to qualify for credit cards. The company believes cash reward programs can be especially enticing to those who are less affluent than typical cardholders.
With higher competition and lower qualifying credit score thresholds, it’s a great time for consumers to shop around for credit cards and maximize their cash perks.
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