Our Finance Guide
  • Home
  • Loans
  • Tax
  • Credit Cards
  • Investing
No Result
View All Result
  • Home
  • Loans
  • Tax
  • Credit Cards
  • Investing
No Result
View All Result
Our Finance Guide
No Result
View All Result
Home Credit Cards

Credit card originations continue at record-setting pace, even as sign-up bonuses dip

admin by admin
February 27, 2022
in Credit Cards
0
Coloradans are racking up a lot of credit card debt

Lenders’ worst fears were not realized

The expected surge in delinquencies and defaults never came in 2020 or 2021—thanks in large part to government aid such as stimulus payments and expanded unemployment benefits—so lenders steadily loosened their credit standards as 2021 progressed. Last summer included an especially robust set of introductory bonuses, too.

At the time, many thought the pandemic was coming to an end, thanks to widespread vaccine availability and a sharp drop in COVID cases. The competition was particularly intense on travel credit cards. Card issuers sought to capitalize on Americans’ desires to emerge from lockdowns, reconnect with family and friends and check destinations off their bucket lists.

Related articles

How using more credit cards can help maximize rewards

Mastercard ban was news to us; will start issuing new credit cards with Visa, RuPay in 90-120 days: Yes Bank

Popular travel cards such as The Platinum Card® from American Express, the Chase Sapphire Preferred® Card, the Capital One Venture Rewards Credit Card and the Citi Premier® Card all dangled record-high sign-up bonuses in front of travel-starved consumers.

Not to be left out, the cash back category roared back to life as well with the debut of compelling cards such as the Wells Fargo Active Cash℠ Card and the Citi Custom Cash℠ Card.

Even the previously sleepy 0 percent balance transfer space rebounded with interest-free terms lasting as long as 21 months.

COVID isn’t gone, but things seem to be getting better

Sadly, the pandemic wasn’t over in mid-2021, but demand for credit cards remained strong. While the Delta and Omicron variants led to dramatic increases in COVID cases during the fall and winter of 2021 and 2022, each successive wave seems to have had a less significant effect on Americans’ finances.

Delinquencies and defaults on credit cards and other financial products have remained very low, the unemployment rate is way down and the economy has been growing at a solid pace. Card issuers seem to be feeling good about the current state of affairs. In fact, their biggest complaint appears to be that too many cardholders are paying down their balances (although that trend has begun to reverse, which is more profitable for banks and less desirable for consumers).

Sign-up bonuses aren’t quite as lofty now as they were last summer and fall, but they’re still good. Demand for new credit cards has remained high, and virus cases have dropped significantly.

Are we entering a second Roaring Twenties?

While we don’t know for sure if Omicron is the last big wave of the pandemic, we have more tools to fight the virus than ever before. Plus, the populace has grown even wearier of COVID restrictions. There’s tremendous pent-up demand to re-engage in activities such as travel, dining and attending concerts and sporting events.

There’s ample data to support the optimistic theory that we’re about to embark upon a second “Roaring Twenties.” For example, Bank of America says its credit card customers spent 28 percent more in January 2022 than they did one year prior. Goods sales have been remarkably strong throughout the pandemic, but spending on services has been weaker.

It seems that an increase in service purchases is likely as more people feel comfortable leaving their homes. And traditionally, Americans have been more apt to put travel, dining and other discretionary expenses on credit cards, often opting for cash and debit cards for everyday essentials such as groceries and gas.

Read more…

admin

admin

Related Posts

How using more credit cards can help maximize rewards

How using more credit cards can help maximize rewards

But there's a growing trend of people carrying five, 10, even 15 or more cards to maximize their benefits and make a lot of money. Jason...

Mastercard ban was news to us; will start issuing new credit cards with Visa, RuPay in 90-120 days: Yes Bank

Mastercard ban was news to us; will start issuing new credit cards with Visa, RuPay in 90-120 days: Yes Bank

“We have already signed an agreement with RuPay for credit cards, and the agreement with Visa will be signed next week... We expect to start credit...

The best credit card for travel has new grocery perks—and a $1,250 welcome offer

The best credit card for travel has new grocery perks—and a $1,250 welcome offer

If you’re looking for the best credit card, Chase issues a few of ’em. And today, the Chase Sapphire Preferred Card got some serious upgrades. The good news: Its...

This Week In Credit Card News: Crypto’s Threat To Card Networks; Should Personal Finance Be Required In School?

This Week In Credit Card News: Crypto’s Threat To Card Networks; Should Personal Finance Be Required In School?

A mid-February survey reveals that over two-thirds of respondents believe that a personal finance course should be a requirement to graduate from high school. On top of that number,...

Valley finance pros: Make a holiday budget to avoid busting credit cards

Discover it Secured Credit Card: Build Your Credit While Earning Cash Back

The Discover it® Secured Credit Card* is one of the best -- if not the best -- secured credit cards on the market. Secured credit cards are designed for...

Next Post
J.P. Morgan Online Investing Raises the Bar on New Account Rewards

Secrets of Sustainable Investing

Remaining Forborne Loans May Require Additional Relief

Oregon City applies for federal loans to fix water pipes

The I.R.S. is warning of a messy tax season.

Free Options for Filing Your Taxes

No Result
View All Result

Subscribe Us

By clicking subscribe, I authorize: (1) Our Finance Guide to use and share my information in accordance with its Terms of Service and Privacy Policy, and (2) Our Finance Guide or third-party companies, including Our Finance Guide’s business partners, to contact me by email with offers for goods and services at the email address provided. Please note that the information you have provided to us may be supplemented with additional information obtained from other sources.

RECOMMENDED

Top 3 Crypto Credit Cards for 2021
Credit Cards

Credit Card Review: World of Hyatt Business Credit Card

Uncategorized

May Class-Action Settlements Involve Apple, Allstate, Nautilus and Old Navy

CATEGORIES

  • Credit Cards
  • Investing
  • Loans
  • Tax
  • Uncategorized

Subscribe Us

By clicking subscribe, I authorize: (1) Our Finance Guide to use and share my information in accordance with its Terms of Service and Privacy Policy, and (2) Our Finance Guide or third-party companies, including Our Finance Guide’s business partners, to contact me by email with offers for goods and services at the email address provided. Please note that the information you have provided to us may be supplemented with additional information obtained from other sources.

© 2021 Our Finance Guide, All Rights Reserved.

  • Contact Us
  • Privacy Policy
  • Terms Of Service
  • Unsubscribe
No Result
View All Result
  • Home
  • Loans
  • Tax
  • Credit Cards
  • Investing

© 2021 Our Finance Guide, All Rights Reserved.