We all know that, for ages, there is no intense competition in the credit card industry and that’s the reason, there has never been a better time than right now, to get your new credit card.
Reward rates, zero-interest and introductory bonuses are kinder than ever and the credit card industry annual fees on average continues to decline.
Without Any Doubt, When Lenders Come Into Competition, Consumers Win!
Recently, competition among credit card lenders has risen up, especially for giant credit holders. We all know that credit card owners have to face a relatively high rate of interest, however, borrowers with an incredible credit history have less risk of defaulting in the event of high-interest rates.
To further attract potential customers, lenders are continuously making efforts to rank number one when it comes to 0% APR periods, bonuses and reward rates. Two years back, 2% reward rate on total purchases, 0% APR was unheard; now you can get this.
Below are some of the generous trends reported by WalletHub’s 2016 credit card landscape report.
An average initial bonus amount of $101.48 hit the record during the 3rd quarter. New applicants are now eligible to get 313% more cash than they could six years back in 2010. In terms of points, 15,664 points/miles are recorded on an average, whereas, for new applicants, it could rise above 123% points/miles.
A 0% APR is a dream of every credit card holder. It means they don’t need to pay an interest for a specified period of time. For all new purchases, the average 0% APR is 9.8 months, 2.3% above from the previous year.
From last year, 2% cash back reward was recorded, whereas, a growth of 2.3% noticed on an average initial bonus.
Over the past five quarters, an average annual fee has gotten down by 5.85%. Foreign transaction fees get lower by 20% when last recorded in the beginning of 2011.
The slight increase in interest rates is just one downside recorded.
Credit Card Recent Offers
Chase Sapphire Reserve
This offer is a game changer! It offers 100,000 points as an initial bonus after spending $4,000 on total purchases within 3 months. It has hefty fees of $450, but also offers $3,000 annual credit for meeting your desired travel purchases and get triple points in dining and travel expenses.
Chase Sapphire Preferred
If the Chase Sapphire Reserve is out of your range, then Chase Sapphire Preferred might be a right fit for you with an annual fee of $ 95 and bonus amount of $625 on travel purchases.
In A Nut Shell
I am not asking you to become a credit card holder even if you don’t need it and just getting it for the sake to avail excellent offers. However, if you are in the process of planning holiday shopping or have any traveling plan, then now it is a marvelous opportunity to own a credit card.