Top credit card issuers shuffle their offers in an attempt to reignite credit card payments. Here are five top card plans in flux. Expect many more to come as issuers attempt to rebuild their credit card portfolios. Chase’s Slate Edge comes out as the most creative of the bunch. For revolvers, it is excellent; for transactors, perhaps not.
Chase Slate Edge.
Someone in 270 Park Avenue nailed this. It is probably the most innovative in the market. Better Rate- and no points. That’s chutzpah.
- Bankrate reports that the card comes with no rewards points. Now, I would never use that model-I like to get the points, pay it off, and hate to revolve. But if you do the math, someone who revolves is far better off passing on the rewards than incurring a 20% interest rate. The posted rate is 14.99% to 23.74%, based on Prime, but the site promises, “Automatic consideration for 2% APR reduction if you spend $1,000 by your next account anniversary and make timely payments.”
And that is a fantastic, creative offer.
It appears that Citi is sunsetting this high-end travel card. The Points Guy once called it “the best travel card.” Benefits included trip delay insurance, American Airlines Admiral Club, and a $495 annual feel. Back when the high-end market emerged in 2017, we asked Are High-Fee/High-Reward Premium Travel Cards a Sustainable Business Model?
The answer is no. There are some specific use cases. American Express Platinum is one, and so is Chase Sapphire, but the audience is not travelers as much as it is perfect for a well-heeled rewards hound. Note that both Amex and Chase just raised their fees on their premium card.
Citi brings a spin to rotating rewards that add value to consumer rewards management. If you shift card usage based on rotating reward programs or follow high point multipliers for certain spend segments, this might be a hit. For example, instead of managing issuer-driven verticals, such as Chase Freedom’s 5% bonus for Gas Stations and Home Improvements in 2Q21, Discover’s Gas Stations, Wholesale Clubs, and Streaming Services, the Citi Custom Cash offers a smart option.
According to Citi, the card automatically adapts to spending behavior and pays 5% back on the eligible category with the highest spend. Like adaptive controls used to adjust to account-level risk, the adaptive reward process reacts to a cardholder’s spending pattern.
Bank of America
Yet, another cashback from BoA. The product offers an unlimited 1.5% cash back card. I just converted to it from my Bank of America Spirit card because that product was a sleeper. But, unfortunately, I do not see every flying Spirit again and got the card only to give away the sign-up bonus.
In my view, Wells paid its price when it hired Charlie Scharf. The new business is now more like Citi or Chase based on the hiring strategy for the management team. In addition, the Wells Fargo Active Cash pays an excellent 2% flat cashback and offers a cash bonus.
Expect more- hopefully as creatively designed, with the Chase Slate Edge and Citi Custom Cash as an example! But, me-too offers do not hurt, either.
Overview provided by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group