[dropcap]T[/dropcap]he credit card industry has been booming for the past few years, and it doesn’t show signs of slowing down anytime soon. Thanks to all the different products and services available to consumers, the industry is expected to reach a whopping $2.4 trillion in 2022. Looking ahead, the top credit cards will offer a mix of new and old services designed to make it easier to use credit than cash or checks, but which ones will work the best for you? Here are the top credit card trends we’re most excited to see in 2022.
New and improved credit offers
As the economy slowly recovers, businesses will need to find ways to entice their customers to spend more or open new accounts. For most of 2020 and 2021, we saw a reduction in balance transfer credit card offers because the landscape was too tumultuous, and many creditors were wary of offering new accounts that wouldn’t pay them interest while they tried to generate revenue.
In 2022, we expect a resurgence of new balance transfer options and improvements in offers related to benefits, membership perks, and cashback rewards.
Adjusting the way travel rewards can be used
COVID-19 made credit cards that rewarded travel nearly useless in terms of rewards or membership benefits, so companies scrambled to keep their customers loyal by changing how they could redeem points and earn benefits. Creditors added new services and offerings to their rewards programs that included more lifestyle or shopping-based rewards or made improvements in how points could be utilized as statement credits. In 2022, we expect to see even more of these travel cards skew the lines between “travel” and “lifestyle” as they try to retain their customers and make their products less affected by the pandemic.
Higher interest rates
Unfortunately, not all the upcoming changes are good for credit card users. The Federal Reserve has already released its plans for multiple interest rate hikes in 2022. Those interest rates are typically for federal-backed programs like student loans and mortgages, but private companies like credit card issuers will follow their lead and increase their rates, too.
Significant changes to loyalty programs
Suppose your credit card offers you complimentary status for hotels, airlines, or cruises. In that case, you should expect to see changes in how airline miles are earned or redeemed and what each status tier provides in terms of amenities and experiences. Hospitality-based businesses like hotels have taken significant hits to their revenues thanks to COVID-19, so expect to see changes to how their loyalty programs are run to help make up for those losses.
The bottom line
In conclusion, the best credit card for 2022 will continue to be the one you use the most. Keep an eye on the available offers from your current credit cards, see if they match up with the open offers on the market, and utilize whatever products or services best align with your financial goals.
