One-Third of Consumers Say Reward Credit Cards Aren't Worth the Hassle
Credit Cards Rewards Survey

One-Third of Consumers Say Reward Credit Cards Aren’t Worth the Hassle

When it comes to personal finance experts, the topic of credit cards has been controversial. In one corner you have those like Dave Ramsey who advises followers to stay as far away as possible, citing the high interest rates they carry and the temptation to spend. At the same time there are those who preach about the wonders of rewards and even so-called “travel hacking” used to earn free trips just for buying what you normally would. Given this discrepency it’s really no wonder that a new WalletHub study finds that one-third of consumers don’t think credit rewards are worth the effort.

In terms of why some adults might be negative toward rewards cards, 60% said they spent more at retailers when rewards were on the table. Meanwhile several respondents took issue with some of the rules that certain cards carry. For example 53% cited annual fees and the expiration of certain rewards as their biggest issues with credit cards. Similarly 47% said it was unfair for cards to require that consumers reach a minimum reward balance before they could cash out. Because of this, 60% of those surveyed said they were more likely to ditch their current credit cards than they were to open a new one.

Despite these drawbacks, there are also benefits to select rewards cards as well. Speaking to WalletHub, Duquesne University associate professor of marketing Audrey Guskey first acknowledges consumer frustrations, saying “Because shopping for a credit card is complicated and depends on so many variables, most consumers have no idea what is at stake when selecting a credit card.” However she went on to note that, “The good news for consumers is that the competition is getting more intense among credit card companies, and so consumers can reap the benefits of more rewards and higher points.” Of course she did still warn, “[K]eep in mind not all credit card rewards are the same, and so it really depends on your lifestyle.”

To Guskey’s last point, it’s clear that survey respondents had a preference for what perks a card offered. First of all 58% said they enjoyed flat-rate rewards better than category-specific ones. Nevertheless, asked what bonus categories they found to be the most attractive, the top response was “groceries” with 43%. That was followed by gas (22%), dining (12%), and travel (11%). Incidentally that would also explain why a whopping 74% of respondents stated that they preferred cash back rewards compared to just 11% who liked airline miles.

Ultimately those who admonish credit cards for their tempting nature and confusing rewards do have a point. That said those who preach responsible credit card spending and maximizing rewards also make a compelling case. Overall what’s most important is that consumers choose a path that they’re comfortable with and is most compatible with their financial goals.

Leave a Reply

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

A Guide to Building Credit and Increasing Your Credit Scores

When it comes to credit, there’s some good news. The average credit score in the United States has been steadily rising in recent years, coming in at 715 in 2023. That may be because, today, consumers not only have more ways to access their credit reports and scores than ever before but also because there are an increasing number of options that Americans have for building credit in the first...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...
Chase Freedom Flex card

Chase Reveals Q2 2024 Freedom 5%(+) Bonus Categories

Chase has announced its bonus category picks for the second quarter of 2024 — including some interesting twists. About the categories: As April approaches, Chase has revealed what categories Freedom and Freedom Flex cardholders can earn bonuses on. From April 1st through June 30th, customers can earn 5% (or more) in three categories: Amazon.com, Hotels, and Restaurants. Similar to how Chase embraced a "New Year, New Me" theme last quarter,...

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...
H-E-B and Central Market  credit cards

Imprint Launches Credit Cards from H-E-B and Central Market 

The FinTech Imprint is partnering with the popular Texas-based grocery chain H-E-B for a pair of new rewards credit cards. This week saw the launch of the H-E-B Visa Signature Credit Card as well as the Central Market Visa Signature Credit Card. With these two (nearly identical) options, customers will be able to earn rewards on groceries and beyond. First, both versions of the card earn up to 5% back on select...