Rewards Matter: 83% of Consumers Select Credit Cards Based on Perks

GAINESVILLE, Fla., Dec. 10, 2024 /PRNewswire/ -- A new survey conducted by CardRates.com, a leading financial resource to better educate consumers about credit cards, revealed that consumers are prioritizing credit card perks when opening a new credit card. The study showed that 73% of participants carefully review various card perks and 83% of cardholders base final decisions on overall perks when deciding which new credit card to open.

With the holiday season in full swing, the survey also highlighted that not all consumers utilize perks to their full potential due to forgetting about perks, overcomplicated redemption processes, or not understanding how to use them. Approximately 62% of consumers surveyed say better communication and/or notifications about perks would make them use credit card perks more frequently.

"Credit cards host a multitude of benefits. Not only can you make purchases via a line of credit, but most credit cards offer additional perks like cash back rewards, price protection, travel discounts, and more," said Erica Sandberg, a consumer finance expert with CardRates.com. "With consumers prioritizing shopping and travel during the holiday season, it's a great opportunity for credit card users to explore their credit card perks and understand how they can best use those benefits to free up money that can be saved or spent on other areas."

Survey Results Highlights:

Rewards such as cash back, travel and hospitality benefits, purchase protection, and retail discounts have become the more popular incentives for consumers. More than 75% of cardholders said that cash back rewards are the top perk available to them. Additional key findings include: 

• 73% of consumers regularly use their cash back rewards
• The second most sought-after perks are hospitality-related (71%), such as hotel upgrades and lounge access, but only 33% of participants said they use this type of benefit
• Nearly 1 in 5 (18%) credit card users said they have canceled a credit card after their holiday shopping was completed
• While card benefits are a key driver, only 35% of consumers have opened a store-specific credit card for holiday shopping
• 62% of respondents cited "better communication, reminders or notifications about available and/or unused perks" would encourage them to use their credit card perks more frequently

For consumers looking for store-specific credit cards, 47% of consumers would be motivated to open a store card with better ongoing rewards and points, as opposed to a one-time discount on the initial purchase, exclusive discounts throughout the year, or special financing options.

This study shows that consumers prioritize the availability of credit card perks when opening a new credit card. However, there is still room for credit card users to learn more about how to best take advantage of the credit card perks available to them. Credit card providers also have the opportunity to provide better educational tools for consumers, increase their communication about available perks, and streamline the redemption processes.

As critical markers in holiday spending and financial planning for 2025 draw closer, CardRates.com encourages consumers to continue using and learning more about the credit card perks available to them for deal-stacking and savings this holiday season.

About CardRates.com 
CardRates.com was created with a singular goal: to better educate consumers about the benefits and perils of credit cards. To that end, CardRates.com's finance experts strive to share valuable, well-researched advice, news, and reviews with visitors daily. For more information, visit CardRates.com

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SOURCE CardRates.com