Lenders still increasing rewards card value
Many lenders are still struggling to maintain revenues as a result of greater regulation from the federal government, and in an effort to entice more borrowers into opening new accounts, have continually boosted the value of their rewards card offerings over the last several months.
Consumers who are interested in receiving points, airline miles or cash back for every dollar of credit card debt they take on may soon begin receiving even more impressive deals for these rewards, according to a report from Scripps Howard News Service. Many of the nation’s top lenders have been increasing the value of these accounts and opening them up to more borrowers, and further regulation may cause that to continue.
In particular, many have begun offering “bonus” points or miles when consumers make a large amount of purchases within the first several months of having their new card, the report said. Many may offer as much as 25,000 additional miles or points for those who spend a few thousand dollars on the account.
Consumers who have a history of credit trouble may want to be cautious, however, as rewards accounts typically carry higher interest rates and annual fees than no-frills cards.