The year 2018 was a good year for credit card holders; credit card issuers introduced lucrative perks and rewards, making it advantageous to own a credit card. On the flip side, interest rates grew bigger. With the average American household having an average credit card debt of $7,000, yearly interest charges could go up to $1,100 according to NerdWallet.
2019 has been a good year so far; offering several rewards and incentives. Below are some of the trends to watch.
More rewards and incentives
The strong economy has made it possible for more companies to launch cards and offer better rewards. Towards the end of 2018, Wells Fargo introduced the Wells Fargo Propel American Express card which aims at providing more points every time a card is used.
More companies have followed the Wells Fargo initiative to reward credit card holders more. In the last quarter of 2019 and beyond, rewards and incentives will only get better thanks to the upping competition between credit card issuers.
More spending on credit cards
Over the past year, many businesses have adopted a cashless system. Sweetgreen and Dos Toros are some of the firms that do not take cash – more are joining the bandwagon. A cashless system is advantageous to merchants as they do not have to count money at the end of the day or balance accounts.
As more businesses prefer plastic money, credit card holders hunting for rewards will use their cards more. While this may not be a preferable option for those who prefer cash, it is already a trend.
Higher interest rates
If your credit card debt is getting out of hand, make a plan to pay it off. Instead of focusing on all the rewards a card accrues, concentrate on making partial payments to ensure your debt does not become unmanageable.
Interest rates have been going up since 2018, and the trend may continue through 2020 and beyond.
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