Consumers avoid store cards; Some New Lucrative Credit Card Bonuses

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Interest in in-store credit cards plunges

Consumer interest in in-store credit cards is waning this holiday season. Only 29% of consumers said they would be likely to apply for a credit card in-store this holiday season, up from 44% in 2020, according to a LendingTree report. However, consumers are still slightly more likely to use store cards for shopping during the holidays rather than using a buy-now, pay-after option. In other findings, 42% of consumers closed a store credit card and an additional 13% had a store card closed by the issuer. [Chain Store Age]

Best offers of 100,000 Southwest Airlines credit card points

For anyone who has considered a Southwest Airlines credit card, huge new high bonuses have just been introduced to the cards. Until December 7, 2021, all three Southwest Rapid Rewards personal credit cards will offer the same new welcome bonus of up to 100,000 Rapid Rewards points: cardholders earn 50,000 points after spending $ 2,000 over the course. the first three months; then an additional 50,000 points after spending a total of $ 12,000 in the first 12 months. [One Mile At A Time]

Chase Sapphire’s Favorite 10% Birthday Point Bonus

In August 2021, Chase revealed a series of exciting changes to their Sapphire cards, particularly increasing the value of the ever popular Chase Sapphire Preferred card. Among those improvements were new, higher spend category bonuses and even a new annual credit of $ 50 on the Ultimate Rewards hotel statement. Another change worth mentioning is a 10% birthday point bonus. Cardholders will receive a 10% bonus based on their total spending during the account’s anniversary year at a rate of 1 point for every $ 1 spent. [The Points Guy]

Almost 60% of Americans trust this credit card the most

In an effort to understand how consumers perceive and use credit cards, GOBankingRates asked over 1,000 American adults, “Which credit card company do you trust the most?” Nearly 60% say they trust Visa the most, followed by Mastercard (21.8%), American Express (9.32%) and finally Discover (7.39%). You have to ask yourself, what is it that makes Visa so popular? The answer is multiple, but it boils down to four main elements: heritage, availability, innovation and perhaps above all, brand image. [GOBankingRates]

Major U.S. issuers surged on flexible, reward-rich credit cards as third quarter volume skyrocketed

Major US card issuers reported explosive growth in payments in the third quarter compared to the previous quarter. During the third quarter, Bank of America’s credit and debit purchasing volume increased 21% year-on-year; JPMorgan Chase’s third quarter credit and debit card sales volume jumped 26%; Citi card purchase sales volume jumped 20%; and Wells Fargo credit card point-of-sale volume increased 24%. Many consumers found themselves in a better financial situation this quarter than they were last year, which may have increased their willingness to use credit cards. Issuers likely saw an opportunity to capitalize on improving economic conditions and introduced a host of new and revamped card products emphasizing flexibility and rewards. [Business Insider]

14% of Americans want crypto rewards for using their credit cards

In recent years, prepaid cards offering cryptocurrency rewards have become popular and a number of digital asset payment cards offer this type of rewards. This means that instead of accumulating miles or frequent flyer points, consumers are rewarded with crypto assets every time they make a purchase with the card. A recent study of 1,011 Americans shows that 14% of US-based credit card users want cryptocurrency rewards on their credit cards. [Bitcoin.com]

Supply chain crisis is bad for iPhones, great for gift cards

In an economy crippled by all kinds of grunts in the global supply chain, growing product shortages make gift cards a safe way to make sure there are gifts under the Christmas tree. Buyers plan to increase their spending by 27% this holiday season to about $ 270 per person, according to a survey by the payment service Blackhawk Network. These gains will push cards to around 40% of their total gift purchases. For the giver, gift cards also take the anxiety out of picking an item for a friend or family member from the endless aisles of the Internet. About 75% of millennials prefer to receive gift cards over physical gifts. [Bloomberg]

Klarna takes preventative action and reviews BNPL program

Buy Now Pay Later FinTech Klarna is changing its services in the UK in anticipation of new regulations expected to be passed by the country’s financial supervisors. Klarna will now make it clear that BNPL is a credit offering that includes penalties for missed payments. At checkout, in addition to being offered payments spread over weeks or months, customers can choose a new Pay Now feature. Klarna also said he would take a tougher stance with credit checks and allow people to share salary and income data from their bank accounts to prove they can make repayments. [PYMNTS]

California bans overdraft fees on certain prepaid accounts

On October 5, California Governor Gavin Newsom signed SB 497, legislation that restricts the types of prepaid accounts that can be used to receive certain government assistance payments. The law now enacted “will apparently close a loophole that allows non-bank prepaid card companies to evade California laws that prohibit overdraft fees on prepaid cards used to receive state aid, unemployment benefits, and child support.” for children distributed by the State ”. [JD Supra]

Capital One’s new Quicksilver Secured Rewards credit card earns 1.5% cash back on all purchases

There is now a new option to consider if you are looking to build (or rebuild) your credit, and it earns 1.5% cash back on all purchases with no limit. The Capital One Quicksilver Secured Cash Rewards credit card only requires a fair credit score, defined by Capital One as those with limited credit history (less than three years), including students, newcomers to the United States. United or authorized users on someone else’s credit card, or those who have defaulted on a loan in the past five years. You can start with a deposit as low as $ 200. [Business Insider]

A look at the impact on your score for opening and closing accounts

Enticing credit card offers are everywhere these days, all trying to lure you in with offers of free travel and other perks. But opening a credit card has a dark side – it usually causes your credit score to drop temporarily. Getting a new card can actually be a big boost to your score. It depends on how you decide to use the card. Lending Tree looked at people’s credit scores a month after opening a single credit card. He found that on average, credit scores have dropped by about six points. The analysis found that people who used their new cards to accumulate revolving balances saw their scores drop, while those who paid off their new balances saw a marked improvement. [Pittsburgh Post-Gazette]

Pandemic prompts launch into online and mobile banking

The Covid-19 pandemic has pushed more consumers to online and mobile banking as banks must meet growing customer expectations and bridge the gap between online and in-person options. The State of Digital Loans report found that baby boomers have increased their use online, with 68% skipping human interaction to decide on banking products, up from 55% before the pandemic. Changes in digital habits are expected to be permanent, as 85% of those surveyed said they were likely to continue to conduct some or all of their financial transactions digitally. [Banking Exchange]


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