The beginning of 2010 was filled with a lot of uncertainty as there was news of higher rates on cards as well as fewer incentives. However, as the year unfolded the credit card offers started appearing in the mailboxes of customers on a regular basis and attractive reward programs have been offered. Now card companies seem to have returned to their pre-crisis levels and are expected to maintain the normal marketing strategies in future.
Come New Year and card companies have more incentives up their sleeve to offer to cardholders. Here`s a quick checklist of the offers that one can expect in the New Year:
Card companies have some interesting cash-back offers for cardholders and these offers will come down to levels that were seen before the credit card crunch. These offers will be better than the ones before the new federal rules took over.
For example, Chase Freedom Visa offers $100 cash back if the cardholder spends $799 on the purchases in the first 3 months after opening the account.
Discover it cards allow to earn at least 1% cash back on all purchases, some cards even offer up to 5% cash back in rotating categories (up to the quarterly maximum). The categories change every quarter and you will need to enroll each time a category changes to be able to earn 5% cash back.
Travel cards offers:
Issuers will be adding more features on the card to attract the card holders with high credit scores. There are some pretty aggressive bonus offers for signing up and these are likely to go up further in the coming year.
A consumer can earn up to 30,000 bonus miles on the United Mileage Plus Select Visa Card and $50 United Travel Certificate on spending $250 with the new card.
Chief Executive, LowCards.com, Bill Hardekopf states that cash-back as well as travel offers will get more attractive, however, some card holders will have to pay the annual fees in case the card is not used up enough. As of now, most of the reward cards do not carry the annual fees.
Most card holders might get anxious about the credit card rates as analysts have predicted the increase in the prime rate in the coming year. However, issuers will have to stay competitive in this regard and cannot have any major changes with regard to the interest rates. In fact, some issuers might even lower their interest rates in 2011.