31% of Credit Cardholders have not Redeemed Rewards
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).