In an effort to draw in more consumers, many of the nation's largest lenders are now increasing the rewards cardholders can earn for every dollar of credit card debt they take on during the holiday season.
Offers for rewards points and cash back credit cards are becoming more generous as the holidays approach, according to a report from USA Today. Increased competition for top borrowers coupled with consumers' tendency to spend more on their credit cards during the final months of the year has led many to incentivize more spending.
For example, Discover is boosting cash back rewards between 5 and 10 percent for shopping done at certain retailers through its ShopDiscover program, the report said. Meanwhile, American Express is giving out five times as many points for purchases made through certain retailers such as Apple and Target, as well as discounting the cost of rewards points redemption for certain items.
Often, consumers spend more on their credit cards during the holiday season than they should, making it difficult to reduce debt and increasing the problems they may have in paying their bills.