Consumers Say Less Is More with Credit Card Rewards

February 6, 2018, Written By Lynn Oldshue

A number of credit card issuers have tried to expand their customer base by trying to provide a number of unique reward opportunities. According to the latest study from Market Strategies International, providing additional credit card rewards may actually do more harm than good.

American consumers value cost over credit card rewards, and many of them are unfamiliar with their current card offers. 52% of survey participants said they thought of their card as “just a credit card,” and 29% said they were aware of most of their card features. Only 19% understood all of the features available to them.

A staggering 72% of consumers said they wanted a card with no annual fee, and 61% were interested in cards with cash back programs. Comparatively, only 35% were interested in retail rewards cards, and less than 30% were interested in airline rewards, hotel rewards, restaurant rewards, and other niche offers.

Consumers desire cash back rewards because they are straightforward and easy to understand. Cardholders can see a monetary reward value for every dollar they spend, as opposed to a point value that could change at any given time. Cards that offer these simple rewards with minimal fees are the ones that will continue to thrive in the years to come.



The information contained within this article was accurate as of February 6, 2018. 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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