Credit card issuers are going back to basics and perhaps charging you more in the process. Here are four credit card industry trends taking shape for 2017.
USA Today had an article, written by NerdWallet, about some credit card trends they are noticing for 2017 we thought you should be aware of so you can make the best decisions about your credit cards this year.
More bread-and-butter rewards
Instead of free hotel stays and airline flights, issuers will go back to rewards such as cash back. So be on the lookout for improved cash-back offers from credit card issuers, plus increased competition from credit card companies wanting your business. Which is a win for consumers like you. Shop around for the best rewards for what you buy most.
Higher interest rates
The Fed has indicated interest rates could rise, which means higher interest rates on credit cards, which then means higher credit card debt if you carry a balance. Pay your credit card off each month and never pay interest. If you do have credit card debt, find a card that has a 0% balance transfer interest rate, transfer it over, and pay it down as fast as you can.
A growing subprime market
This isn’t quite the return to the subprime easy credit days, but credit card issuers are making it a little easier to get a secured credit card and a chance to rebuild your credit score. Consumers with subprime credit have more credit card accounts now than at anytime since 2010. So if you are one of them, now is a good time to try to improve your credit.
A high percentage of people who have a smartphone and a checking account/debit card used their mobile device to make a purchase or make payments in the past year. Issuers also are making it easier to make purchases and redeem rewards directly with merchants online and through apps. The downside is that it’s easier to overspend when it is so easy to spend. Stick to a weekly spending limit and don’t ruin your budget.