A different kind of redemption

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David Henry, business reporter for Reuters, quoted me in an article about credit card reward competition:

The intense competition over card rewards has its roots in the financial crisis of 2008. Post-crisis reforms reduced the profitability of other businesses such as mortgages and capital markets trading, encouraging banks to turn to cards for profits. And, within that business, the reforms pushed banks from people with lower credit ratings toward creditworthy customers who respond to incentives.

And lately, the banks have had the means to bid more for customers because loan losses have declined to record lows.

At the same time, cardholders have become more savvy about working the incentives.

Ivan Drucker, a New York City-based consultant to Apple computer users, recently used awards from a strategically managed mix of credit cards to travel in luxury to Finland.

Drucker, 46, said he borrowed on cards at high rates in years past, but he’s determined not to do it again.

“For me, there’s personal redemption in this,” Drucker said. “They got the better of me. Now I hope to turn those tables.”

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