A Look Back: Which Credit Card Predictions Came True in 2017?
Update: Some offers mentioned below are no longer available. View the current offers here.
As frequent travelers look ahead to a new year of new credit card offers, I'm taking a look back to reflect on the past 12 months of news for cardholders and see which of my credit card predictions came true over the past year. Here's my personal report card. Feel free to grade my performance in the comments below, and weigh in with the developments from this year that mattered most to you.
Prediction in 2016: APRs will increase.
Grade: A
This prediction wasn't exactly tough to make. As the outlook for the US economy has strengthened, it was clear that the Federal Reserve would continue to raise interest rates. Whatever the Fed does trickles down to the variable rates that cardholders pay if they carry a balance. The nationwide average APR currently sits at 16.15%, nearly a full percentage point higher in a year-over-year comparison with 2016. That upward climb will continue. If you're carrying a balance, paying it down to zero should be at the top of your list of resolutions for 2018.
Prediction in 2016: Banks will reevaluate bonus opportunities.
Grade: B
At the end of last year, I speculated that banks would reevaluate whether it made sense to offer massive sign-up bonuses to attract new cardholders. All those rewards have carried a hefty price tag. It certainly feels like the bonus party has died down a bit this year. The Chase Sapphire Reserve 100k bonus disappeared, and American Express warned that anyone who wants to game the system can lose their points. However, there are some promising signs for the sign-up bonus landscape. In November, four travel credit cards offered their highest-ever sign-up bonuses for a limited time.
There have been reminders that bigger bonuses are reserved for bigger spendings. The new Bank of America® Premium Rewards® credit card offers a 50,000-point sign-up bonus after $3,000 in spend in the first 90 days, which is in line with the industry's norms, but the card's biggest earnings potential kicks in for BofA customers who can deposit $100,000 in a checking, savings or investment account with the bank. Chase copied the move with targeted offers to entice Sapphire Reserve cardholders to deposit $100k into a Private Investment account. Those offer aren't exactly going to appeal to, you know, average customers.
Still, there have been simpler ways to earn smaller bonuses. For example, if you use the Platinum Card from American Express, you might be able to score an easy additional 10,000 Membership Rewards points before the end of the year with just 10 purchases.
Prediction in 2016: Debt will climb to the sky.
Grade: A
Again, not the toughest prediction to make, based on American spending habits. Last summer, Americans set a not-so-great record: the highest debt in history with $1.02 trillion in revolving debt collectively. According to TransUnion, there are more than 171 million Americans with credit cards — approximately 21 million more than in 2010.
Prediction in 2016: Swiping will disappear.
Grade: C
Major merchants have embraced chip payments, but I'm still swiping my card at gas stations, my neighborhood grocery store and a number of other retail outlets. However, the extinction of swiping isn't the big story here. The real news is that the need for signatures is disappearing. Mastercard, Discover and American Express have all announced plans to do away with the need for a personal autograph on a receipt.
Prediction in 2016: Mobile payments will make a bigger impact.
Grade: F
We're all used to using our smartphones to do loads of tasks, but paying for purchases does not seem to be one of them. Smartphone users aren't yet sold on mobile payments, according to a recent report from Auriemma Consulting Group. The research showed that mobile payments have declined by 5% this year due to concerns about security and challenges at checkout. Banks obviously still believe in the potential of mobile payments. Chase just signed a deal with Kroger, the biggest grocery store chain in the US, to start using the Chase Pay mobile wallet services. Getting customers to actually use the service clearly isn't going to be an easy task, though.
What's in store for 2018? Check out some new predictions here.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
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- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.