[Begin VIDEO with Kristin Arnold, Bankrate.com anchor introducing the video topic]
KRISTIN ARNOLD: If you always pay your credit card balance in full and can resist the urge to overspend, then this segment is for you. Bankrate.com is out with its latest survey of cash-back credit cards, and here to discuss the results is Greg McBride, senior financial analyst with Bankrate.com. [Cut to a double screen of Kristin Arnold and Greg McBride]
KRISTIN: What did Bankrate.com find in its latest survey of cash back credit cards?
GREG: Payout ratios were mostly unchanged from a year ago. 1% cash back is still the most common, but we do continue to see higher payouts for certain categories of spending…things like gasoline, groceries, dining out and that’s where consumers can really rack up the rewards. KRISTIN: Anything in particular that jumped out this year?
GREG: Introductory bonuses, not only are they very common, 40% of the cards surveyed actually have an introductory bonus but they’re also a lot more generous than they were a year ago. And good news, the majority of the cash back cards we surveyed charge no annual fee. KRISTIN: Do cardholders need to worry about expiration of their accumulated rewards?
GREG: On cash back cards, it’s really a non-issue. The reason being is about half of the cards have no expiration in place and of those that do the most common was a 5 year window, so something like cash you can redeem frequently, expiration is not really a worry…it comes into play more on those travel based cards where it takes a long time to rack up enough point to redeem for something meaningful. [Cut to one shot of Kristin on camera]
KRISTIN: Ok, thanks Greg….and if you would like to read more of the highlights from Bankrate’s cash-back credit card survey log onto Bankrate.com. For Bankrate.com I’m Kristin Arnold.