Many Americans Avoid Store Credit Cards
Nine out of ten Americans (89.4%) have been asked to apply for a credit card in a retail store, but just over half (61.2%) have applied in the store and fewer than a quarter (24.3%) have applied online, according to research from Vyze.
The study, which surveyed over 1,000 American consumers, found some shoppers simply do not want to finance the purchase, but many had other reasons for not completing an application. More than one-fourth (26.9%) did not want to provide their financial information to the store associate, 15% did not want to deal with a long application process and 10.4% were worried they would be declined.
When asked why they would not complete an application online, nearly half (41.8%) said they had security concerns.
The survey also asked what factors store shoppers considered before applying for a credit card, and found that competitive interest rates are less important than other factors, including rewards or incentives (59.7%), simple applications (51.2%) and fast credit approval (40.2%). Only 29.9% of respondents cited a competitive interest rate as their top concern. For those applying online, a simple application beat out a competitive interest rate (47.7% versus 32.1%).
While many Americans currently believe banks are the best source of a retail credit card (40.8%), there appears to be a change on the horizon. Young shoppers (ages 18 to 29) trust retailers such as Amazon (31.8%) as much as they do traditional banks (33.7%).