5 Credit Card Trends to Watch for in 2022 | Personal Finance | dailyprogress.com – The Daily Progress

In early 2021, vaccine news had Americans ready to roll up their sleeves, pull off their masks and indulge in a countrywide celebration. But thanks to COVID-19 variants, “Hot Vax Summer” devolved into “Can’t-Find-a-Rapid-Test Winter.”

Still, some consumers remained hopeful — traveling for the holidays, returning to offices and going back to in-person school. The cautious optimism also extended to credit cards, which offered enticing perks for those ready to step out. In 2021, we saw trends like big bonuses, new ways to redeem rewards, the return of balance transfer cards and an explosion of credit card variations on buy now, pay later.

Here’s what’s in store for credit cards in 2022.

1. A focus on breathing room as prices rise

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Over the past 12 months, the overall cost of living has increased by 7%, according to the U.S. Bureau of Labor Statistics. More cardholders are seeking cash-back rewards to help save on things like grocery and gas purchases, or travel rewards that can defray vacation expenses. And because these prices are higher, consumers want ways to spread out those purchases over time:

An abundance of 0% APR offers

Cards are lengthening 0% interest offers for new purchases and balance transfers, and are even extending such offers to existing cardholders. According to Competiscan — a company that tracks and analyzes direct marketing activity — mail and email marketing to existing cardholders for balance transfer promotions doubled between Q4 2020 and Q3 of 2021.

And those no-interest periods are getting longer. Competiscan also found that in the third quarter of 2021, 34% of balance transfer offers to current cardholders were for 15 months or more, compared to about 10% of offers in the fourth quarter of 2020.

More ways to split up payments

Many credit card issuers have a version of buy now, pay later, but it differs from third-party providers in that it’s largely post-purchase: You may be allowed to select individual card purchases to split into multiple payments, but only after you’ve bought the item.

But card issuers are thinking of ways to offer payment plans at the point of sale, says Beth Robertson, managing director of Keynova Group, a financial services intelligence firm.

That would give users the benefit of a buy now, pay later service with the consumer protections of a credit card.

2. Rewards that get you in the door — and keep you in the room

For years, 1.5% back has been the industry-standard rewards rate, but it looks as if 2% back could eventually become a norm. Rewards now come …….

Source: https://dailyprogress.com/business/investment/personal-finance/5-credit-card-trends-to-watch-for-in-2022/article_f847fc19-68a9-5047-9f1b-ea218cae8655.html

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