| December 10, 2010 |
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Frugal shopping is a high priority for most consumers this holiday shopping season. While credit cards might be the last place most would think of looking for savings, this year they might be worth a closer look.
The number of credit card users is down by 8 million this year, and card issuers are in a fierce competition for cardholder dollars. This is good news both for people applying for new cash back or rewards credit cards as well as for existing cardholders, because many card issuers are sprucing up deals for both. Here is an overview of some of the better cash back deals that card issuers and retailers have rolled out for the holidays:
1. Sign-up Bonuses for Cash Back Credit Cards
If you are in the market to apply for a new credit card, you are in luck. Card issuers currently are one-upping each other with sign-up bonuses on cash back credit cards. For people who apply now, the sign-up bonus could prove helpful in taking some of the bite out of the new year’s credit card bills.
Chase started the trend with a $100 sign-up bonus for the Chase Freedom Card for new cardholders, who spend more than $500 within the first 3 months. The card features a rotating 5 percent cash back bonus in certain purchase categories, and 1 percent cash back on other purchases. For small business owners, the Chase Ink Card also currently offers a $100 cash back bonus as well, issued after new cardholders make their first purchase.
Discover Cards, similarly, has upped the sign-up bonus for new Discover More cardholders to a $100 cash back bonus. New cardholders must spend $500 within the first 3 months to qualify. The Discover More card also features a rotating 5 percent cash back up to a maximum in purchases, usually up to a maximum of $300 to $800 in charges.
More recently, Citi has added a $100 statement for people applying for its Citi Forward Card, who make $500 in purchases within 3 months of account membership. Also, the Citi ThankYou Premier card offers 20,000 bonus ThankYou points for new cardholders who spend $1,000 in purchases within 3 months of account opening. While technically a travel rewards card, points are redeemable for $200 in gift cards and other rewards. Read more...
