Personal Finance- Credit news
With six credit companies recently announcing their latest offers of providing rewards north of $1000 as sign up bonus to their customers, there is more reason for individuals with a good credit rating to go ahead and open fresh accounts. As per a recent survey by the website CreditCards.com, this is the first time in the history of finance that so many credit issuers have declared a four figure reward as a sign up bonus in a bid to acquire new clients. Touting it as a yet another example of cut throat competition, the senior industry analyst of CreditCards.com, Matt Schulz remarked that the new sign up bonus scheme is more like an arms race for achieving superiority over one another.
Credit cards in the sign up bonus arms race
The Chase Sapphire Reserve card is offering the highest sign up bonus of $1500 to its fresh customers. It is closely followed by Chase British Airways Visa Signature, American Express Business Platinum and Chase Ritz-Carlton Rewards Card, that will be providing their newly acquired customers with $1145, $1190 and $1160 worth of sign up bonus respectively. Two other cards namely Chase Fairmont Visa Signature and Citi/Advantage Executive World Elite MasterCard will both offer $1000 as a sign up reward for new customers.
The sign up bonus strategy
There are several reasons behind the sudden upsurge in the amount of sign up bonus that some of the credit giants are now offering to their newly acquired customers. The first and foremost aspect that influences the revised reward strategy is the fact that consumers are using their credit cards now more than ever to cater to the financial requirements of their luxurious lifestyle. Another major reason behind credit companies offering hefty sign up bonuses is the fact that the delinquency rates and charge off or the probability of a consumer defaulting on his debt repayment have gone down considerably in the recent times. The credit companies are more enthusiastic in acquiring such credible customers by luring them with attractive rewards that are hard to overlook. The Chase Sapphire Reserve Card that sits atop the rest in the game was also the first one to offer nearly double the sign up rewards that its closest competitor at the time was providing its customers. Taking the cue from the massive popularity surge of the Chase Sapphire Reserve card, the Am-Ex Business Platinum too followed suit.