HOTEL

As interest rates climb higher, here’s what’s in store for credit cards this year

In 2022, we got revenge. Revenge spending, revenge travel — we were determined to make up for time we lost amid the height of the COVID-19 pandemic. But the economy had other plans, and inflation and rising interest rates started to limit the fun. Over the past year: 

Here’s what may be in store for credit cards in 2023.

1. Credit card companies could re-tighten their belts

Earlier in the pandemic, credit card issuers toughened their lending practices. They required higher credit scores to qualify for many cards and limited balance transfer offers (only to bring them back later). According to NerdWallet’s 2021 Consumer Credit Card Report, close to 1 in 5 credit card holders (19%) reported that the limit on one or more of their credit cards decreased since the pandemic began.

In 2023, concerns of a recession continue, and that could lead credit card issuers to become more conservative in their lending practices again, according to Jessica Duncan, director of research and insights at Competiscan, a company that tracks and analyzes direct marketing activity. This may eventually affect credit limits and the availability of balance transfer credit cards this year.

2. Interest-lowering options will be popular

High credit card balances, combined with high interest rates, have consumers looking for ways to lower the cost of their debts. Balance transfer credit cards remain an option for those who qualify, and they aren’t just for new applicants. You may receive compelling balance-transfer promotions on cards you’ve held for a while, too.

Card issuers are also more heavily publicizing their built-in buy now, pay later features to compete with third-party companies that offer installment plans at the point of purchase, according to Beth Robertson, managing director of Keynova Group, a financial services intelligence firm. Robertson notes that programs tied

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TRAVELLING

How To Make Your Money Go Farther In 2023

There are about a million reasons to want your money to go farther in 2023. Maybe the high inflation throughout 2022 has you feeling like you’re paying more for less, or perhaps you took a pay cut that made you feel financially squeezed.

Maybe you’re getting a year-end bonus and you want to make sure it’s not frittered away on “stuff” that won’t actually help you build wealth. And, let’s not forget that this year’s stock market performance is making everyone’s net worth drop like a rock.

Whatever your reason, it’s always smart to look ahead to a new year with the goal of doing better if you can. But, what are the best ways to make your money go further when it feels like everything at the store costs more each time you go? I reached out to various financial advisors and experts to get some fresh insights, and here’s what they said.

Ditch High-Interest Credit Card Debt

Rising interest rates were a good thing for savers throughout all of 2022, but they had the opposite effect on households that carry long-term credit card debt. In fact, the average credit card interest rate increased from 18.10% in September of 2022 to 19.55% by December of 2022, according to Bankrate.

If you have this type of debt, paying it off

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