Chase Sapphire Preferred 100k end date is an example of a credit card that offers a huge bonus. Chase has also released another card with a similar offer, but it will likely not last much longer.
With the new card issuers, it’s getting harder to earn miles and points. This is because they are focused on one thing: increasing revenue by offering more incentives, promotions, bonuses and special offers in order for users to spend even more money.
Why Are We Seeing Huge Credit Card Bonuses Right Now, And Why Isn’t It Going To Last?
on November 22, 2021 by Gary Leff
I am compensated for the content and several links on my site. Citibank, American Express, Chase, Barclays, and Capital One are all advertising partners on this site. My advertising partners have not reviewed, authorized, or supported any of the thoughts stated in this article. I don’t write about all credit cards; instead, I concentrate on miles, points, and cash back (and currencies that can be converted into the same). The offers and advantages described on this website are subject to the terms.
In 2021, there were incredibly massive – perhaps unprecedented – introductory bonus offers for credit cards. Here are eight offers worth noting for their great generosity, as well as the fact that they’ll assist to explain why we’re seeing such large offers, as I’ll explain below.
- With the Capital One Venture X Rewards Credit Card, you may receive 100,000 extra miles after spending $10,000 in the first six months of account creation, which is equivalent to $1,000 in travel. Also, for a limited time, you may get up to $200 in statement credits for vacation rentals paid to your account in the first year.
- This $95 annual fee card offers 80,000 ThankYou® points once you spend $4,000 in purchases during the first three months of account creation. It’s a high-earning card with points that may be converted into airline miles or hotel points. And this is the most generous offer the card has ever received.
- The United ClubSM Infinite Card, which gives you access to United Clubs, is offering a 100,000 bonus mile offer once you spend $5,000 on purchases in the first three months after creating your account.
IHG Rewards Platinum status (beginning in 2022), a 10% discount on coach saver awards, and 10,000 bonus miles for signing up for CLEAR before June 30, 2022 are just a few of the amazing new benefits introduced to the card. And 100,000 miles is a significant distance.
- After spending $15,000 in the first three months on the Ink Business PreferredSM Credit Card, you will get a 100,000 point signup bonus. That could even cover a round-trip business class award flight between the United States and Europe.
- The Southwest Rapid Rewards® Plus Credit Card now has its biggest-ever offer, with up to 100,000 bonus points: 50,000 bonus points after spending $2,000 on purchases in the first three months of account opening, plus another 50,000 bonus points after spending $12,000 total on purchases in the first year. ($69 per year)
This best-ever benefit is also available on the Southwest Rapid Rewards® Premier Credit Card and Southwest Rapid Rewards® Priority Credit Card.
- After spending $6,000 on purchases on the Platinum Card® from American Express in your first 6 months of cardmembership, you may earn 100,000 Membership Rewards® Points. Plus, during your first six months of Card Membership, earn 10x points on qualifying purchases made with the card at restaurants around the globe and when you Shop Small – on up to $25,000 in combined expenditures. That’s an extra 225,000 points, bringing the total first bonus offer possibility to 325,000 points.
On the basis of this new offer alone, the card is obviously worth acquiring. However, I keep my card and consider the annual fee (See rates and fees) to be worth it because of the $200 annual Uber credit (usable with Uber Eats plus it now comes with Eats Pass, enrollment required); $200 annual airline fee credit (Southwest has been my airline of choice for this, enrollment required); $100 annual Saks credit (enrollment required); and lounge access (Centurion, Delta, Priority Pass which cardmembers must request, Plaza Premium); and Hilton and Marriott Go (See rates and fees). In addition, there are a slew of new perks.
- The British Airways Visa Signature® Card has reintroduced an introductory bonus offer of 100,000 Avios with much more fair restrictions. This incentive is earned once you spend $5,000 on purchases during the first three months of creating your account. This was the first 100,000-level card offer I’d ever seen (back in 2009), and it’s still available.
- After spending $3,000 on purchases during the first three months of account creation, you may receive 150,000 extra points with the IHG® Rewards Club Premier Credit Card. In the past, they’ve utilized 140,000 as their highest point offer. It’s a can’t-miss deal with a $0 introductory yearly cost for the first year ($89 afterwards).
After each account anniversary year, you’ll get a free night at an eligible IHG hotel anywhere in the globe. One of the nicest advantages is that every time cardholders redeem points for a stay of four or more nights, they earn a reward night. That’s better than Hilton’s ‘5th night free,’ and it works up to a 25% reduction on four-night award stays. Platinum level is granted to cardholders for the duration of their membership. There’s also a fee credit for Global Entry or TSA Precheck (up to $100 every four years).
These aren’t the only significant deals we’ve seen this year; for example, Chase’s Sapphire Preferred program offered 100,000 points this year, and American Express has offered 90,000 miles on a co-branded Delta card, to mention a few.
Such large bonuses are the result of a series of circumstances.
Cardmember Numbers Must Be Replaced By Banks
Every year, every card will lose consumers. For cards with fees, this occurs commonly around the time of card renewal (annual charge). They could lose 10% of their weight each year. They were on the verge of losing even more during the pandemic, which is why we saw banks actively forgiving fees, granting statement credits, and sponsoring alternative offerings throughout the epidemic.
Customers don’t use double or treble points in travel categories when they aren’t spending on travel. Accelerator categories are money-losers for banks, designed to tempt you to obtain and use their card in the hopes that you’ll use it in non-bonus categories as well. Customers were not utilizing established accelerators, so banks temporarily substituted them with items like restaurants and groceries, and added statement credits for restaurant spending instead of flight or Paypal (shop at home generally).
Even when banks were able to’stop the bleeding’ of cardmembers in many situations, they nevertheless saw attrition at usual levels. That’s OK during normal hours since they’re always adding new clients. The epidemic, on the other hand, was unique.
- No one was applying for rewards credit cards at the outset of the epidemic.
- And banks weren’t lending to those who did since it was difficult to predict who would have a job in a year — there was too much uncertainty.
As a result, banks have lost clients due to a lack of typical replacement flow. They must now quickly backfill.
They’re doing it against a background of low interest rates from the Fed and robust consumer balance sheets (they spent less money last year, and there was plenty of government stimulus cash, plus the stock market and real estate has done very well). Right now, there’s a lot of consumer spending to compete for.
When high incentives become common, even new cards and goods that would not typically be aggressive begin to make enormous offers in order to compete for customer attention. When incentives start becoming so high, and delivering what used to be an enticing bonus no longer works to grab consumer attention, there’s a ratcheting up of expectations around what ‘normal’ looks like.
In other circumstances, like as with Marriott and Hilton, banks have pre-purchased points and have discounted access to them.
This Pattern Will Reverse.
During and after the Great Recession, we saw the same thing happen. Banks lost clients and utilized large incentives to entice new ones, armed with cheap loans and prepurchase miles. While incentives did not return to pre-recession levels, we saw a decrease in the number of 100,000-point offers.
When the Federal Reserve rises interest rates, customers exhaust their bank accounts, and cardmember numbers stabilize, the incentive for large bonuses fades. It won’t happen overnight since competition will keep bonuses high for a time. When do you reduce bonuses, particularly when others haven’t? However, we should anticipate the frequency of unusual offers to begin to decline over a period of time.
Click here to see the rates and fees for American Express’s Platinum Card®.
More From the Wing’s Perspective
The “limited-time credit card offers” is a reason for the huge bonuses we are seeing now. The offer will not last and it is only temporary, but that does not mean you should not take advantage of it.
Frequently Asked Questions
Why do credit cards give sign-up bonuses?
A: Credit cards usually give a cash back bonus to new members, and this is for two reasons. The first reason is that the company wants more people to use their card in order to get free money from them. The second reason is because they want you spending more money on their products or services so you can earn it back through rewards programs like frequent flyer miles or credit towards travel purchases.
Are credit cards going away?
A: No, credit cards are not going away. They will still be around for a while as the standard form of payment that people use.
Whats the highest credit limit you can have?
A: This is not something I can answer.
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