Value of credit card rewards on the rise

Consumers have likely found that the number of offers for rewards credit cards – and the amount of points, cash back or miles they earn for every dollar of credit card debt they take on using those accounts – is on the rise in recent months.

Rewards credit card benefits have been on the rise in recent months, both for those who are switching to new lenders and those who are keeping their old ones, according to a report from CNN Money. For example, the value of introductory offers sent to would-be borrowers have jumped dramatically, though many now require borrowers to reach certain spending thresholds within a few months of opening the account.

Lenders are also beefing up benefits for current borrowers, the report said. Some are increasing the number of points they earn for every year the account is open, while others grant as much as 50 percent cash back on all rewards earned.

However, rewards credit cards typically also come with higher ongoing interest rates and annual fees that can be difficult for some to afford. Therefore consumers who are attempting to reduce debt may want to look at options related to no-frills accounts with lower rates and no fees.