Credit card rewards have proven especially popular with younger Americans. Millennials drove the popularity of Chase Sapphire Reserve, and Citi said the age group makes up almost half of Prestige’s existing customers.
When card issuers raise minimum spending requirements, they risk turning off these consumers. There’s a limited supply of affluent millennials who can afford the higher spending requirements without overspending or racking up lots of debt. In the most recent U.S. Census Bureau data, the median household income for Americans age 25 to 34 was $57,366.
Frank Leppar, 30, would be a prime candidate for the Citi Prestige. A blogger for Loophole Travel and a technology director for a school district, Leppar loves to travel and has built up a stash of reward points from other cards. But Leppar and his wife, a paralegal, “make middle-class money,” he said, so he’s wary of the Prestige’s $7,500 spending requirement.
Still, he’s tempted. He already has the Amex Platinum and Chase Sapphire Reserve. “For anyone who travels somewhat regularly, both cards pay themselves off rather quickly,” he said.
This article was provided by Bloomberg News.