Many Consumers Don’t Research Credit Cards... - Products 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 » Products » Many Consumers Don’t Research Credit Cards Before They Apply

Many Consumers Don’t Research Credit Cards Before They Apply

The content is accurate at the time of publication and is subject to change.

Researching a credit card before getting it can ensure that ou get the card that best meets your needs. Whether you’re looking to earn miles for flights or just plain cash back, there’s a card designed for you.

But according to a new study by U.S. News & World Report, just about half of people do some research to see what the card actually offers. Also, half of these consumers admitted that they don’t usually shop around to find the best card.

In this study, U.S. News Money took a close look at what preferences are when it came to earning and using rewards. Why do people choose the cards they ultimately decide to apply for? The top three reasons are:

  • No annual fees
  • How fast they can earn rewards and perks
  • The rewards themselves

Yet while rewards factor into their decision, some people fail to optimize their rewards cards, with 25% saying that they tend to carry a balance about seven times per year. This trend can actually cost cardholders more in terms of interest and fees than the make from the rewards they actually earn with their card.

“There are dozens of rewards credit cards to choose from,” said Kimberly Castro, executive editor at U.S. News. “But, consumers need to do their research to find the right card for their specific financial situation. By carrying a balance or not shopping around, they’re leaving money on the table,” she added.

Cash back, miles or something else?

When they asked consumers whether they preferred earning miles, points, cash back or something else, getting cash back took the top spot, with 43% saying that over the last year, they traded their rewards in for cashback or they had asked for a statement credit.

Travel was also hot. Airline rewards came in right behind getting cash back, with 23% of people opting for airline tickets or upgrades. And last but not least, 16% of people used their rewards to score a gift card or two.

Top rewards cards

U.S. News & World Report also published their list of top rewards cards. Their picks include:

  • Chase Freedom
  • Chase Sapphire Preferred
  • Ink Business Preferred
  • Gold Delta SkyMiles Credit Card from American Express
  • Starwood Preferred Guest Credit Card from American Express
  • Capital One Venture Rewards Credit Card
  • Blue Cash Preferred Card from American Express
  • Hilton Honors Ascend Card from American Express

amex_news

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 New Iberia and Aer Lingus Visa Signature Cards
The New Iberia and Aer Lingus Visa Signature Cards

Posted: March 22, 2018

Chase Card Services has partnered up with the Avios Group to roll out the Iberia Visa Signature card, and they are planning on launching an Aer Lingus Visa Signature card during the spring. With these cards, customers will earn three Avios... Continue reading
New SPG Amex Luxury Card Arrives This Summer
New SPG Amex Luxury Card Arrives This Summer

Posted: April 26, 2018

The Starwood Preferred Guest American Express Luxury card is coming this August, along with the new SPG and Marriott combined rewards program. This card offers 6x the points when booking stays at SPG and Marriott Rewards hotels and 3x... Continue reading
Get 20,000 Points or $200 Cash Back With Amex Offers and AT&T
Get 20,000 Points or $200 Cash Back With Amex Offers and AT&T

Posted: May 07, 2018

Amex Offers has another deal on the table. If you have an American Express business rewards card, you can earn $200 cash back or opt to get 20,000 Membership Rewards points when you spend $200 with AT&T. What's more, you can use this... 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 and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
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!