‘Recession-Type’ Credit Cards Enjoy Rising Popularity amid Prolonged COVID-19 Pandemic | Be Korea-savvy

‘Recession-Type’ Credit Cards Enjoy Rising Popularity amid Prolonged COVID-19 Pandemic

(image: Korea Bizwire)

(image: Korea Bizwire)

SEOUL, Dec. 8 (Korea Bizwire)Amid dampened consumer sentiment caused by the COVID-19 pandemic, ‘recession-type’ credit cards that offer generous rewards in return for a low annual fee and minimal usage record are enjoying rising popularity.

According to the credit card comparison website CardGorilla, half of the 10 most popular credit cards among those issued this month were so-called ‘unconditional cards.’

Unconditional cards are those that reward customers in points or cash depending on their spending for the previous month, without specific conditions on where and how much they spent.

For last month, the most issued credit card was Hyundai Card Co.’s Hyundai Card Zero Edition 2 that offers a 0.7 percent discount without specific conditions at its affiliated stores in Korea and abroad.

The annual fee for unconditional cards is low at about 10,000 won (US$8.50).

Analysts noted that consumers are showing stronger preference towards unconditional ‘point accumulation or discount-type’ credit cards as the pandemic prolongs, and are fewer places to spend money.

Ashley Song (ashley@koreabizwire.com)

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