Survey: Consumers pick credit cards based on the perks
Perks are the overwhelming reason consumers select their credit cards.
That's according to data from CardRates.com, which found that 73% of survey respondents “carefully review” various card perks, and 83% of cardholders base final decisions on overall perks when deciding which new credit card to open. Behind overall perks, the second most sought-after perks are hospitality-related (71%), such as hotel upgrades and lounge access. However, only 33% of respondents said they use this type of benefit.
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.
[READ MORE: Average interest rates of store credit cards nearly 31%]
Approximately 62% of consumers surveyed said 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."
Additional findings from the CardRates.com survey include the following:
- More than seven-in-10 (73%) consumers regularly use their cash back rewards.
- Nearly one-in-five (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.
