Consumers Prefer Cash Back Over Other Credit Card Rewards
When it comes to choosing a rewards credit card, most consumers prefer cash back offers over all other rewards. A new survey from Ally Bank reveals that 58% of consumers seek cash back rewards, beating out store promotions, low introductory interest rates, travel rewards and introductory bonuses.
The study also revealed that 66% of consumers would be willing to have their cash back rewards deposited into a bank account if doing so would earn them extra cash back. Consumers would prefer to bundle their bank account, credit card account, and personal loans with the same financial institution if they could earn bonus rewards.
Despite the high interest rates that may come on some cash back credit cards, many consumers are not maximizing their cash back opportunities. Only 36% said they use their credit cards for daily purchases, but a number of cash back cards offer extra rewards for fuel, grocery and dining purchases. If consumers shifted all applicable transactions to their cash back credit card, they may earn significantly more money back on their cards.
28% of survey participants said they lost rewards on their credit cards because they were too difficult to cash in or they expired. When selecting a cash back credit card, it is important to understand the terms of the program and how the rewards can be applied.