Digital News Report – Credit card companies are expected to mail-out more applications this year compared to last. Since the recession began, banks had been cutting back on their mailings, but this may be changing.
With mortgage rates at historic lows, banks are looking for other ways to increase their profits. Revolving outstanding credit card debt declined from $799.7 billion in the last month of 2010 to $795.5 billion in January 2011.
Cash Back Cards
The Capital One® No Hassle Cash(SM) Rewards is more than a rewards card. This Cap-One card gives two percent cash-back on gas and groceries. On everything else they provide one percent cash back.
It is like getting a discount on everything you buy. There is no annual fee and the cash you earn does not expire. There is also an introductory period with zero percent interest (APR) on all purchases until March 1012.
A recent survey found that Americans that use their credit cards can save money over those who pay cash. Users need to pay-off their balances and spend the same or less than they would with cash.
Frequent Flyer Cards
If you would rather get airline miles than cash back, there are cards that provide that. The Chase Sapphire Preferred Card is a great card for frequent fliers. The interest rate is 13.24% variable ARP.
Cardholders can earn 25,000 bonus points after they spend $3,000 in the first 3 months. Customers who book through their online system (Ultimate Rewards) are worth 25% more.
There is a 7% annual points dividend. The company says those points are available even if the points are used.
By Tina Brown