Wednesday 20th of November 2019

Costly Credit Card Trends

Whether they’re for earning rewards or out of pure necessity, these days just about everyone has multiple credit cards. Even young teenagers are no strangers to credit cards. It’s all a far cry from the scene of 20 years ago, when most people had just a single card and never earned cash back for their purchases. Obviously, the credit industry is growing and evolving, but it’s not always doing with the consumer’s best interest in mind. Here’s a look at some of the possible trends that could cost you in the future:

Costly Credit Card Trends

  • One of the great offers we’ve seen from issuers are cards with little to no interest rates. While this trend may continue, you can probably expect to see it cost you in other areas. Balance transfer fees continue to rise and even a barely late payment can increase your interest rate.
  • Perhaps the most popular method of luring in new customers for companies has been offering intriguing reward programs. By spending a certain amount on your card, you could earn cash, gift cards, or other benefits. However, there’s a growing trend among many companies of limiting the amount of rewards you can receive per year or making it more difficult to earn them.
  • Possibly the most disturbing trend of all lies with the ever increasing interest rates. With Federal Reserve rates continuing to go up, consumers can expect to see their interest rates climb in the next year as well. For many, that means higher minimum payments and more late fees too.
  • Another trend that will surely cost you money – rising fees and penalties. Just ten years ago you might have paid as little as $10 for a late fee, today that same fee will easily run you double that and will probably reach $40 by next year. Do your best to avoid them and keep your balances low or expect to pay the price.
  • We’ve all heard about the threat of identity theft, a crime that will probably only grow with time. As we move more and more of our lives online, identity thieves are finding all kinds of new ways to steal our data. Most issuers have only just begun to take the risk seriously, despite the fact that there have already been several well publicized security breaches among merchants and credit card processors.