Credit card welcome offers remained available in 2020 recession, suggesting positive outlook for credit cards

From Yahoo Finance: 2025-04-23 15:18:00

During the 2020 U.S. recession, credit card sign-up bonuses remained available, with some issuers like Chase maintaining normal offerings. A past recession saw a trillion dollars in credit slashed, impacting millions. Credit card delinquency rates peaked during recessions but dropped post-recession, showing a similar pattern over time.

The credit card market saw a surge in zero-APR offers in 2008, with 35% of debt on promotional terms. However, balance transfer offers plummeted during the Great Recession and the pandemic. Despite economic turmoil, some credit card companies offered valuable sign-up bonuses in 2020, suggesting continued availability during recessions.

Credit card companies may reduce offers and credit during recessions, as seen with slashed credit limits and the removal of balance transfer offers. But rewards credit card offers, requiring spending to earn points or cash back, were prevalent in 2020. Different companies provide varying rewards, so choose based on preferences and needs.

Credit card sign-up bonuses can be lucrative if requirements are met. Consider factors like nearby branches, types of cards, available offers, mobile support, and other financial services when choosing a credit card company. Remember to utilize credit cards responsibly to avoid debt, especially during economic downturns.

Read more: What happens to credit card welcome offers and bonuses in a recession?