As per a recent survey conducted on credit card holders, many of the cardholders are not looking for new offers. According to the study, around fifty five million cardholders in the US rank cash back and rewards as the best benefits of credit cards. The popularity of these rewards has made many credit card holders to switch their cards, as forty-two percent of the people who took part in the survey switched their credit cards in the past years.
There is also a large segment of credit card users that never switch their credit cards, despite the numerous reward programs that are offered. Thirty-eight percent of the people who took part in the survey said that they had not changed their main and most used credit card in the last ten years.
“People tend to select their primary card based on features that are important to them, from travel or cash back awards to low interest rates, but that doesn’t mean those features remain stagnant,” said Jeff Sigmund, who is the spokesman for the American Bankers Association. “Competition drives innovation to increase the customer loyalty that’s so important to card issuers.”
Below is a rundown of the main findings of the survey.
Rewards and Cash Backs are at the Top
Forty percent of the credit card holders who took part in the survey said that cash backs and rewards were their favorite benefits. About a quarter said that it was due to the rewards and cash backs that they signed up for their primary credit cards. Twenty-one percent said that low interest rate was their attraction while signing up for the credit card, and eighteen percent said that they signed up for the credit card for a low annual percentage rate(APR).
Middle Aged Users like Rewards
The survey showed that sixty-two percent of the cardholders who were between the ages of twenty-seven and thirty-six were more interested in reward programs, as they said that cash backs and rewards were the best thing that they like about their credit card.
Loyalty Comes with Age
The survey also showed that elderly people are more loyal to credit cards. These people stick with the same credit card for a longer period when compared to the millennials and new generation people.
Favorite Card offers Peace of Mind
Fifty-seven percent of the credit card holders who took part in the survey said that their favorite credit card offers purchase protection. Other popular benefits are extended warranties on purchases, rental car insurance, and price protection.