Slackening credit requirements and an increased interest among lenders in enticing consumers to open new accounts has created a top-quality market for those who want to open rewards credit card accounts, according to a report from CNN Money. Many of the nation’s largest lenders are increasing the value of not only signup bonuses, but also ongoing offers.
In addition, due to the hypercompetitive environment that now exists, some lenders are even adding significant bonuses for consumers who choose to stay with their current card issuer, the report said. In many cases, this bonus is an additional 50 percent on all rewards earned in a year, paid on the anniversary of the account opening.
Lenders may be more interested in promoting these cards to consumers because they typically have higher ongoing interest rates and annual fees that can better generate revenues than no-frills cards.