Outlook 2022 for credit cards
Welcome back to great bonuses and balance transfer offers! Towards the end of 2021, we began to see issuers launch new premium cards with large premium bonuses intended to spur new credit card signups.
Although many issuers reduced or stopped offering balance transfers altogether at the start of the pandemic (looking at you, American Express), others began to increase their terms with a small handful of issuers even offering the rare 0% APR offer from 21 months. .
While total credit card balances at the end of 2021 are lower than they were in the pre-COVID-19 era, this is no time to get lazy with your spending habits in 2022. Tips for 2022 include addressing any debt with high interest that you still have, so you can hopefully spend most of the new year with a clean financial slate.
Read more: Top 6 Credit Card Tips for 2022
Travel Rewards Outlook for 2022
Travel rewards are a use-it-or-lose-it proposition. While it may feel good to rack up a lot of points with a hotel or airline program, the value of those rewards is likely to decrease over time.
With the pandemic hitting the travel industry the hardest, focusing on flexible rewards may be more valuable to you in 2022. Why? If your flight plans are canceled and you used miles from a specific airline to book the flights, you’ll earn a credit that can only be used on that airline.
But with flexible currencies, like Chase Ultimate Rewards or American Express Membership Rewards, you’ll get your points back and be able to rebook your travel the way you want, which means you can trade flight plans for hotel plans closer to home, or travel abroad to a country with open borders.
Read more: Top 5 Travel Rewards Tips for 2022
2022 Outlook for Airline and Hotel Loyalty
That’s (mostly) good news for those with elite airline and hotel loyalty status in 2022. The travel industry continues to extend elite status in recognition that many of us have scaled back or canceled travel plans since the start of the pandemic. This means that if you did not leave your ZIP code in 2021, but maintained elite status from the previous year, most programs will extend your status for an additional year.
Of course, you can earn elite status in other ways besides completing a certain number of nights or flights. For example, several hotel credit cards can give you status just for having them. Or you can take advantage of benefits that may come with your existing credit card that give you benefits similar to elite status.
Read more: Should I change the status of my airline or hotel in 2022?
2022 Outlook for Credit Scores and Reports
Credit bureau Equifax announced in December that it will add buy now, pay later (BNPL) accounts to consumer credit reports. These installment plans have gained popularity in recent years and have become a common option for those who want to pay for small and large purchases over time without resorting to credit cards.
TransUnion and Experian also plan to add this report in 2022. For BNPL users who make payments on time, the additional report can further strengthen your credit history. But be careful not to lose track of these payments, as you could see your score drop if you miss due dates or fail to meet your installment plan.
Read more: Equifax will include Buy Now Pay Later data in credit reports