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Card Hub report shows credit cards increasing rewards to win back customers

Odysseas PapadimitriouAccording to a recent report from Card Hub, credit cards are becoming more consumer-friendly with an increased amount of cash-back rewards, sign-up bonuses, airline miles and reward point bonuses.
 
The report found that cash back rewards were 60 percent more lucrative in the fourth quarter of 2011 than they were during the same time period in 2010. Sign-up bonuses rose with cash-back offerings increasing 100 percent from 2010 to 2011. Reward point bonuses and airline miles increased by 10 percent, Main Street reports.
 
"The credit card market is obviously improving, mirroring the nation's overall economic recovery," Odysseas Papadimitriou, the CEO of Card Hub, said, according to Main Street. "We can only expect the U.S. credit industry to become even healthier in 2012, with access to credit increasing and interest rates and rewards either standing pat or improving slightly."
 
In addition to the increased bonuses, zero percent introductory annual percentage rates lasted 27 percent longer than they did in 2010. Many issuers of cards are currently offering teaser rates that range from six to 21 months upon an account's opening. In addition, fees related to foreign exchanges and balance transfers have decreased to make offers more attractive to consumers that frequently travel or have high balances.
 
During the same time period, the APR for regular cards increased as a result of the abolished fees and improved promotional offers. Credit cards for excellent, good and fair credit along with secured credit cards experienced an APR rise between 3.5 and 9.5 percent. Business and student cards rose one percent from 2010 to 2011.

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