Consumers Not Taking Advantage of Credit Card Rewards - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Consumers Not Taking Advantage of Credit Card Rewards

Consumers Not Taking Advantage of Credit Card Rewards

Consumers Not Taking Advantage of Credit Card Rewards
The content is accurate at the time of publication and is subject to change.

What good is a credit card rewards program if you don’t take advantage of it? A survey published by Capital One Corp. found that 57% of credit cardholders have not redeemed any reward points in the past three months. Only 22% of those surveyed are satisfied with the credit card reward program they have.

The survey was conducted by BIGresearch in late March and included 1,045 people with rewards cards. Its margin of error is plus or minus 3.1 percentage points.

Difficult Redemption

The primary reason listed for not redeeming credit card reward points in the last three months was the difficulty in redeeming the points for rewards. Some rewards programs have special terms and conditions that must be met in order for cardholders to cash in their points. Other programs have specific dates or time frames for processing the rewards that do not meet the needs of the cardholder looking to cash in points. Travel rewards, for example, are often subject to blackout dates.

Lack of Interest

The second main reason that cardholders are not taking advantage of rewards programs is that they do not think the reward items are attractive. Reward catalogs filled with products or merchandise that does not fit into your lifestyle or fulfill your desires makes it less likely that you’re going to cash in your points. Other programs have interesting items, but only at the highest point levels, which you may never achieve in your lifetime. While 72% of respondents said they would prefer cash rewards, only 54% have a cash-back option.

Reason for Rewards

The main reason that people participate in rewards programs, according to the survey, is because they see it as a way to earn “free money.” Free money may come in the form of cash or merchandise.

While people do like to earn things for free, if a credit card rewards program is not intriguing enough, then cardholders are not likely to participate. Reward programs are only as rewarding as cardholders perceive them to be. To increase participation, credit card companies need to evaluate whether what they are offering cardholders is meeting and exceeding their desires or falling short.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

The Newly Revamped Hawaiian Airlines World Elite MasterCard

Posted: July 20, 2018

Vacationing in Hawaii can be a dream for many, and those with the recently upgraded Hawaiian Airlines World Elite MasterCard and Hawaiian Airlines Business MasterCard can earn miles towards a trip quicker with the cards newly revamped ... Continue reading
Getting Cash Back When Flying With Aerolineas Argentinas

Posted: July 19, 2018

There is a new Amex Offer on the table for people who are thinking about flying with Aerolineas Argentinas, giving them $100 in cash back when booking flights with the airline. To get the deal, travelers must spend $500 or more. Continue reading
American Express Cardholders Get Free Amazon Prime

Posted: July 18, 2018

If you have an American Express credit card you may find a special offer in your inbox, one letting you take Amazon Prime for a test drive for free for three months. This offer is available until July 23rd, 2018, or until 160,000 people ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
0% Intro APR on Balance Transfers and Purchases for 18 months. After that, the variable APR will be 15.74% - 25.74% based on your creditworthiness*
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!