As credit card issuers compete for business and contend with economic conditions, the world of credit card rewards is primed for some changes. Before we turn our calendars over to 2024, it’s time to think about how industry developments and macroeconomic trends will affect the credit card rewards landscape over the next year. Here’s what we could expect from the best credit cards in 2024.
Chase Freedom Unlimited®
Regular APR
20.49% – 29.24% Variable
On Chase Bank USA, NA’s Secure Website
0% APR offers may come under pressure
0% APR offers are a great tool for people looking to consolidate and pay off debt, or bridge income gaps without taking out a more expensive loan. Several issuers offer cards that don’t charge any interest for a year or more.
There’s no such thing as a free lunch, though, and with interest rates sitting at the highest levels since the early 2000s, the opportunity cost to issuers for offering a 0% APR bonus is higher than it’s been in a long time.
These offers could also become harder to obtain if issuers look to reduce their risk and focus more on customers with stronger financial profiles.
This combination of factors could put serious pressure on 0% APR credit cards, leading issuers to reduce the length of the 0% interest period or remove the offer altogether. If you’ve been eyeing a 0% APR card, now is a great time to check out some of the best 0% interest credit cards available.
Credit card rewards become more of a political issue
A bill with bipartisan support has the potential to reshape the credit card rewards landscape, with wide-reaching implications for individual travelers as well as large hotel and airline chains. Under that bill, the Credit Card Competition Act, card issuers with over $100 billion in assets (such as Chase, Bank of America and Wells Fargo) would have to allow merchants more choice over who processes credit card payments from their customers.
Currently, each credit card comes with one payment network (such as Visa or Mastercard), and merchants pay a small “interchange fee” set by the payment network on each credit card transaction. Lawmakers say requiring qualifying issuers to offer two different payment networks would prompt competition and lower fees.
But industry advocates say that the legislation would decrease funds from interchange fees and force issuers to cut credit card rewards programs.
When Congress passed the Dodd-Frank Act to reform the financial sector in the aftermath of the 2008 financial crisis, it included the “Durbin amendment,” authored by current Senate majority whip Dick Durbin (D-IL), who is now a sponsor of the CCCA. The amendment capped debit card interchange fees, and debit card rewards dwindled. Credit cards don’t work the same way as debit cards, but issuers could decide to similarly pull back on rewards.
The CCCA was referred to committee in both the House and Senate in June, and there is no set path for its passage.
Flexibility will still be key
Over the last several years, most major issuers have made flexible airline and hotel transfer partners more easily available. We’ve seen this both from established legacy players like Capital One and newer upstarts like Bilt Rewards, and there’s no reason to think this trend will cool down in 2024. In fact, Wells Fargo unofficially released new cardmember agreements for the Wells Fargo Autograph℠ Card, indicating that it will add transfer partners in 2024.
Customers will pay up for exclusive travel perks
When it comes to transiting a busy airport, the fewer people you have to share your travel benefits with, the more they’re worth. So as perks such as Priority Pass lounges and TSA PreCheck attract more crowds, issuers may look for ways to enhance exclusivity.
We’re already seeing the early innings of this, with both Capital One and Chase opening their own airport lounges in several locations, similar to the Amex Centurion lounge concept. More cards could also start offering CLEAR® Plus memberships in addition to or instead of TSA PreCheck. Beyond that, issuers may look to offer more boutique and personalized experiences.
In theory, issuers could offer reduced perks on certain cards to increase exclusivity. But after backlash and a partial reversal following a Delta SkyMiles update that involved reducing the airport lounge access included with multiple Delta credit cards, a different approach seems more likely. Instead of stripping benefits, issuers may add new ones to select cards in exchange for higher annual fees.
We’ve seen card updates tied to annual fee increases before. In 2022, the Marriott Bonvoy Brilliant® American Express® Card (terms apply, see rates and fees) got refreshed and saw its annual fee jump from $450 to a whopping $650. It’s possible that Amex could take a similar approach with the Delta SkyMiles® Reserve American Express Card (terms apply, see rates and fees) and Hilton Honors Aspire Card from American Express
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The information for the Hilton Honors Aspire Card from American Express has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer.
, both of which are looking comparably cheap right now with annual fees of “just” $550.
To view rates and fees for Marriott Bonvoy Brilliant® American Express® Card, please visit this page.
To view rates and fees for Delta SkyMiles® Reserve American Express Card, please visit this page.
*The information for the following card(s) has been collected independently by CNN Underscored Money: Hilton Honors Aspire Card from American Express
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The information for the Hilton Honors Aspire Card from American Express has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer.
, Marriott Bonvoy Brilliant® American Express® Card, Wells Fargo Autograph℠ Card,and Delta SkyMiles® Reserve American Express Card. The card details on this page have not been reviewed or provided by the card issuer.
Frequently asked questions (FAQs)
The only new card that’s been confirmed for 2024 is the Wells Fargo Autograph Journey. This will be a Visa card with an annual fee, but further details haven’t been released yet.
Credit card interest rates (known as annual percentage rates, or APRs) are tied to Federal Reserve interest rates, which have steadily increased since early 2022. The most recent data from the Federal Reserve pegs the average credit card APR at 22.77% as of August 2023. While many analysts expect the Fed will lower interest rates in 2024, these are just predictions.
The right time to apply for a new credit card depends on several factors, including your reason for opening the card and the rewards you want to earn. Some consumers wait until they have big purchases coming up so they can meet the minimum spending requirement to earn a welcome bonus. Others watch for limited-time offers to earn a higher bonus than usual before they submit their applications.
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