What are the coolest credit cards to get in 2021?

The average American has about 3.84 credit cards, according to Experian.

This number has increased steadily over the years, influenced by the booming rewards programs that credit card companies offer to attract new customers.

Many credit cards offer travel insurance as a perk.

This can include trip cancellation insurance, lost luggage reimbursement, and emergency medical services while traveling, providing essential protection without extra cost to the cardholder.

The design of credit cards can influence consumer behavior.

Research found that attractive card designs can increase usage frequency as consumers are more likely to use cards that they perceive as aesthetically pleasing.

Contactless payment technology, used by many modern credit cards, relies on radio-frequency identification (RFID) or near-field communication (NFC) technology.

These technologies allow consumers to make quick transactions by tapping their card near a payment terminal, reducing checkout times.

Some credit cards offer a feature called "virtual card numbers," which provides a unique card number for online purchases.

This adds a layer of security, reducing the risk of fraud associated with sharing the physical card number online.

The way rewards are structured on credit cards can sometimes lead to "points churning," where consumers switch cards frequently to maximize sign-up bonuses.

This practice is driven by the competitive rewards market and can lead to more financial advantage if done judiciously.

Scientific studies show that "anchoring" can influence how consumers perceive the value of rewards.

For instance, if users see a credit card advertised with a high sign-up bonus, they are more likely to register that card without fully considering other options.

Many credit cards now feature a flexible payment option, allowing cardholders to pay off a balance over time at a predetermined variable interest rate, which can be beneficial when managed properly.

The perception of value in credit cards extends beyond just monetary benefits; cardholders often value exclusive access to events or lounges, adding a social and experience-based component to the perceived worth of the card.

The FICO score, commonly used to determine creditworthiness, weighs various factors including payment history, credit utilization, and account age.

Having multiple credit cards can help improve utilization rates if balances are managed carefully.

Some high-end credit cards offer concierge services, which leverage both technology and human agents to provide personalized recommendations and assistance, significantly enhancing the user experience.

Emerging credit card technologies, like "digital wallets" and biometrics, are rapidly changing how credit cards work.

Some cards can be authenticated using fingerprint or facial recognition, adding another layer of security.

The "rewards redemption ratio" varies greatly among credit cards.

For instance, redeeming points for travel can yield much greater value compared to merchandise, often as much as 1.5 to 2 times higher for flights or hotel bookings.

Credit card companies utilize complex algorithms to analyze consumer spending patterns.

This data-driven approach allows them to tailor rewards and promotions specifically to individual consumer behaviors, enhancing customer satisfaction and loyalty.

The average interest rate on credit cards fluctuates due to various economic factors, including adjustments by the Federal Reserve.

It's not uncommon for rates to vary by several percentage points within just a few months as these external economic indicators shift.

With the rise of cryptocurrency, some credit card companies are beginning to experiment with offering cryptocurrency rewards or allowing transactions in digital currencies, linking traditional finance with modern technology.

Behavioral economics plays a significant role in credit card usage and rewards programs.

For example, the "loss aversion principle" suggests that consumers feel losses more acutely than equivalent gains, prompting credit card issuers to frame rewards in ways that emphasize potential losses from not using the card.

Credit card issuers often use machine learning algorithms to detect fraudulent transactions.

These systems analyze transaction behavior and patterns in real time, allowing for immediate responses to suspected fraud, thereby protecting cardholders from potential losses.

The environmental impact of credit cards is a growing concern, leading some issuers to create eco-friendly cards from materials like recycled plastic.

This move reflects a broader trend towards sustainability in consumer products.

Credit card fraud prevention techniques utilize a blend of science and technology, including 3D secure authentication and tokenization.

Tokenization replaces sensitive card details with a randomly generated number during transactions, significantly enhancing data security.