| September 23, 2011

Rewards cards bonuses increasing

Perhaps in an effort to drive consumers to accumulate more credit card debt, many lender are now offering greater rewards than ever on new accounts.

According to a report from CNBC, some lenders are offering rewards worth hundreds of dollars for new borrowers who make sufficient purchases using their new cards. One new card account is offering enough airlines miles to pay for two domestic flights for customers who put $2,500 in spending on the account.

“These are some of the biggest incentives we’ve ever seen,” Andrew Davidson of Mintel Comperemedia, which tracks card offers, told the news source.

However, like many other rewards cards, most of these offers are generally limited to borrowers with strong credit records, who are viewed as prized customers in an era when many consumers have had difficulty managing money.

Experts say some of these cards also require annual fees and higher interest rates, so they may not make financial sense for people who don’t spend a great deal with their cards or carry a balance from one month to the next.

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