Many consumers across the country tend to take on more credit card debt as the holidays approach because of the high cost of buying gifts for their friends and family. And because of that, lenders are more actively trying to incentivize these purchases.
The value of rewards programs being offered by credit card lenders is increasing significantly as the holidays approach, according to a report from Reuters. For example, JPMorgan Chase and Citi are now both offering credit cards that grant new customers $200 cash back after they spend their first $500. Meanwhile, a new Bank of America offer grants consumers an 11 percent rebate for purchases, and several lenders are granting consumers 5 percent cash back for purchases on a rotating list of categories.
However, lenders are also making the top-notch offers more difficult to find on their websites, and some may actually require a web search to find, the report said. For this reason, it may be helpful for consumers to educate themselves on the highest value offers before heading to the site.
Consumers tend to increase credit card spending around the holidays because gift purchasing is often difficult to squeeze into a monthly budget. However, before spending too much, consumers should also have a plan on how they will get out of debt.