ATLANTA — As holiday credit card bills begin arriving in mailboxes and inboxes, one financial expert says now may be a good time for consumers to take a closer look at the cards they’re using.
Bankrate analyst Ted Rossman says the credit card industry has seen a shift toward high-end products, calling it “the year of the luxury credit card.”
“It became the year of the luxury credit card,” Rossman said.
Some premium credit cards now carry annual fees approaching $800 to $900, a significant increase from just a few years ago. Rossman says consumers should carefully weigh whether the perks are worth the cost.
“There are a lot of people willing to pay a premium for travel and dining and other perks, and card issuers are really trying to reach a high-end audience,” he said.
Rossman encourages consumers to shop around and choose cards based on what benefits matter most to them, whether that’s travel rewards, dining perks or cash back.
For those struggling with credit card debt, Rossman says there may be some relief ahead. He notes that interest rates are beginning to come down slightly, which could help make paying off balances a bit easier in the new year.
Credit card companies continue rolling out new offers, but experts say it’s important for consumers to look closely at fees, benefits and long-term costs before signing up.
