While credit card issuers were expected to pare back rewards in a cost-cutting measure after the implementation of the Credit Card Accountability, Reliability and Disclosure Act, many have not. That strategy is paying off for them.
According to a new report from Fox Business, cards that reward consumers with frequent flier miles for every dollar of their credit card debt have been growing in popularity.
As a result, issuers are looking for ways to improve such offers while keeping an eye on their bottom line as more consumers try to eliminate credit card debt. David Gold, senior vice president at Chase, told Fox that despite the Credit CARD Act, interest in the accounts has been robust.
“Over the years, the frequent flier mile has been pretty valuable,” he told the news service. “The value is there.”
Often consumers will exchange the convenience of being able to compile frequent flier miles for slightly higher rates on their credit card debt or some sort of annual fee. But a recent study found that consumers who use these plans, particularly those that offer double or triple miles, may not be the best value. Consumers may want to shop around to determine which type of rewards card is best for them.