The fact of the matter is that most of us are reliant on credit cards. Not only do we use credit cards to cover expenses, but to take advantage of the numerous rewards that they offer.
Are you curious about the state of credit cards in 2019? Wondering what’s trending in credit card news? Then read on!
Increased Credit Card Usage
As time passes, cash becomes less and less popular as a payment method. This is true not only because consumers have opted to forego the use of cash, but because some merchants are refusing it as a payment method altogether.
What payment methods are being used in its place? Debit cards, online payment accounts such as PayPal, and, of course, credit cards. For this reason, credit card usage is up in 2019.
Many consumers have upped their credit card usage as a means of securing related rewards. By purchasing items with their credit cards, they’re able to get cash back, earn points towards vacations, and reap a variety of other benefits. These types of rewards are not included with other payment methods.
One of the perks of using a credit card to make purchases is the capital one credit card that one gets in return. While credit cards have always offered rewards on specific types of spending, the scope of these rewards has expanded in 2019.
For instance, some cards are offering triple rewards points on specific types of purchases, as opposed to the double points that were rewarded in the past. In addition, some cards have expanded the types of purchases that are eligible for rewards points. For example, some cards have made travel and video streaming expenses eligible for triple points.
In essence, if you’re looking to get the greatest returns on your financial investments, you should consider opting for a new credit card. Doing so could improve your reward earnings by as much as 50%.
While sliding or inserting a credit card into a reader isn’t a particularly trying task, it can take a little more time than is desired. In a world that moves at lightning speed, there is little room for anything less than 100% efficiency. This is why no-touch credit cards are becoming increasingly more popular.
No-touch cards are nice because they can be scanned without insertion. All the user has to do is take the card out and hold it over a scanner. It will scan in under a second and allow you to go on your merry way.
Several credit card providers have unleashed no-touch cards, including American Express, Capital One, and Chase. While these cards have technically been around since the early 2000s, they’re poised to take off in 2019.
Higher Interest Rates
As usual, credit card interest rates are expected to increase this year. This is fairly standard practice but is not necessarily true of every year. So, if you have a large amount of debt to pay off, you would be wise to do it sooner rather than later.
It also seems as if fewer and fewer card providers are providing 0% intro APRs. This will make it increasingly more difficult for consumers to cover large expenses interest-free.
In essence, it’s more important than ever for you to pay off any expenses that are charged to your credit card. Failure to pay off these expenses promptly could result in huge interest payments down the road.
Increased Credit Card Debt
The good news is that more and more people are gaining access to lines of credit. The bad news is that this is causing a substantial increase in debt. You can expect credit card debt to rise gradually throughout 2019, as more people using credit cards equals more people failing to make payments.
Of course, it’s not just greater access to credit cards that is creating this problem. The above-mentioned increased interest rates factor in as well. After all, 25% of $4,000 is greater than 23% of $4,000. If interest rates have increased, yet monthly payments have remained the same, more and more debt is going to accumulate.
More Co-Branded Cards
Stores have a lot to gain by offering co-branded credit cards to their customers. Not only do such cards reap the rewards for businesses in the ways of fees and interest payments, but they also help to foster customer loyalty. In other words, customers are more apt to do business with companies whose credit cards they own.
In 2019, you should look for an influx of co-branded credit cards. Businesses understand their power and are doing everything they can to throw their hat into the proverbial ring.
And this isn’t only beneficial for the retailer. Consumers can benefit from co-branded cards as well, reaping several rewards that can’t be reaped with singularly-branded cards.
The last thing to look out for in 2019 is consumer-friendly credit card practices. Many credit providers are going out of their way to enhance the experience for consumers. They’re doing this not only by slashing late payment fees but by slashing overdraft fees as well.
Some providers are even providing free credit tracking, allowing you to check your score without penalty as needed. If you buy a Capital One credit card, for instance, you will be given this capability. This can be hugely helpful if you’re looking to buy a car, a house, or some other big-ticket item.
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