Americans credit card debt has just hit a disturbing record of $1.02 trillion according to the federal reserve.
NEW YORK — Shoppers with means who want a lot of high-end rewards on their credit cards have plenty of options — at least right now.
Since JPMorgan Chase launched the $450-a-year Chase Sapphire Reserve Card a year ago, joining the market created by the American Express Platinum Card, companies like U.S. Bank and UBS have jumped in with similar cards. Citi’s Prestige card, which gives the unique benefit of a fourth night free at hotels, already existed.
The increased competition could help customers. Banks sometimes waive annual fees or offer additional points for certain types of spending in order to drive business. And analysts say the companies’ desire to keep their cards distinctive may mean they offer more benefits. But whether enough people want to hold these cards may determine how sustainable the profusion is.
Chase’s Sapphire Reserve Card was introduced last August with a 100,000-point sign-up bonus, worth $1,500 using Chase’s rewards program, a $300 annual travel credit, and no foreign transaction fees, among other perks. Even with the huge fee, customers ate it up. Demand was so high that Chase temporarily ran out of the metal alloy used to make it.
Banks had previously thought that the market for luxury…