Holiday rewards for credit card users

Credit card issuers are preparing their holiday rewards just in time for the shopping spree that is due to start anytime now. Companies are trying to lure the customers away from their debit cards and other competitors. While they do their holiday shopping, credit card users are even able to pick up some cash.

"The rewards have become very, very attractive in terms of cash back and travel," said Bill Hardekopf who works for LowCards.com. "Issuers have stepped up the rewards because it's now more lucrative for the banks for you and me to use our credit cards instead of our debit cards."

Debit card interchange fees have been capped starting with October 1st when the financial reform legislation was put into motion.

"Rewards have been generous, in general, because issuers are trying to get back consumers they lost in the recession," said Beverly Blair Harzog, who is a credit card expert with Credit.com. "I'm particularly seeing a lot of cash-back bonuses."

At the moment both Chase and Citibank are offering their new users $200 in cash if they hit the $500 mark on their cards. Those that will receive the best offers are the shoppers with good credit scores that pay their bills regularly, every month.

"If you're running a balance right now, it's not a wise idea to shop with that credit card, because you're only going to dig your hole deeper," Hardekopf explained.

One of the banks that have important holiday rewards is Bank of America who gives 11 percent rebate on purchases.

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