31% of Credit Cardholders have not Redeemed Rewards

April 12, 2017, Written By Lynn Oldshue
31% of Credit Cardholders have not Redeemed Rewards

Almost one in three cardholders (31%) have never redeemed their credit card rewards, according to a new Bankrate report.

Most consumers seem to take an all or nothing approach to card rewards, as cardholders either redeem their rewards frequently (38% have done so within the past six months) or not at all.

“Credit card rewards don’t usually gain value over time,” said Bankrate.com credit card analyst Robin Saks Frankel. “In fact, they’re more likely to lose value as companies require more points or miles for the same perks. Your best move is to cash them in regularly.”

The study, which was conducted by Princeton Survey Research Associates and interviewed over 1,000 adults in the United States, found cash back redemption is the most popular reward, as nearly half of the respondents (49%) have used their rewards for this purpose. Millennials were more likely to redeem their rewards for cash than older adults (67% versus 43%). Airline tickets (17%) and gift cards (12%) rounded out the top three.

While many believe Millennials are credit adverse, this seems to be changing. Older Millennials (aged 27 to 36) are more likely than GenXers to use a credit card (61% versus 56%). Baby Boomers and the Silent Generation are more likely to have cards (64% and 68%, respectively).

The information contained within this article was accurate as of April 12, 2017. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.

About Lynn Oldshue

Lynn Oldshue has written personal finance stories for LowCards.com for twelve years. She majored in public relations at Mississippi State University.
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