Many of the nation’s top credit card lenders have recently begun trying to lure new clients with the use of increased introductory bonuses for rewards credit cards, and many of the people taking advantage of the offers are frequent flyers.
Consumers who use travel frequently are now choosing to open a number of new credit cards in their name just to get the bonus miles offered on sign-up by lenders, according to a report from the Wall Street Journal. In a number of cases, consumers can earn up to 100,000 free miles just for signing up and meeting some minimum spending requirements over the course of a few months, and this type of offer has become more popular with lenders in recent months.
In March alone, Capital One Financial gave away more than a billion miles to consumers through these signup and early spending offers, the report said.
Lenders may grant consumers these miles because travel rewards credit cards typically come with higher interest rates and annual fees than traditional, no-frills cards.