According to a recent report out of Dallas, the major retailers around the country as well as financing companies are boosting their reward credit cards programs in order to entice consumers to choose them for their credit needs. This is good news for consumers, of course, and is a tip to the fact that creditors believe the economy is starting to come out of the recession, which will bring more and more buyers into a place of taking advantage of these types of programs.
Take, for example, the reward credit cards offered by the big-box retailers Toys R Us and Target. Currently, Target gives a five percent discount on each and every purchase made in the store using the REDcard accounts. Toys R Us is set to announce that it’s going to add a full 10 percent back on purchases for its reward credit card program, up to purchases of $500.
Traditional credit cards that aren’t associated with retailers are offering benefits, as well. The Chase Freedom cards are right now giving five percent back in cash on purchases made at supermarkets, movie theaters and even department stores, up to a maximum of $1,500. That particular reward program is set to expire on December 31 of this year.
In other instances, retailers are partnering with credit card companies to create new rewards programs. Grocery giant Kroger has partnered with U.S. Bank on a reward program for their credit cards under the Kroger branding label. The program relies on points that are able to be turned in and exchanged for groceries. Kroger is giving double points for the purchases that consumers make using the Kroger branded credit card at an actual Kroger store, with three times the number of points when buying items with the Kroger brand.
The advent of new reward credit cards doesn’t seem to be hurting existing programs, however. Those programs that offer consumers airline miles are still doing well, and are particularly popular among consumers on the higher range of the income scale, as well as for folks that travel for business.
If you’re looking into a new credit card, make sure to pick one that offers you the kinds of rewards you’re most likely to earn and use.