But rebate and reward programs like that are becoming a thing of the past as thrifty consumers opt for cash back instead.
According to the TNS Consumer Credit Card Program Study, 61 percent of cardholders surveyed now prefer cash-back reward programs, up from 57 percent in 2007.
TNS expects this trend to continue through next year as households use extra cash to meet outstanding debt obligations and even just to pay for groceries.
Credit card issuers are quickly learning which segments of the population prefer cash-back rewards versus other bonus point programs and are tailoring their marketing efforts to reach them.
However, in today’s economy where a good credit score is important to apply for a mortgage loan, auto loan and sometimes even car insurance, consumers should look beyond the rewards being offered and understand the limitations and interest rate terms offered by card companies.
Almost all age groups and income segments preferred cash-back reward programs based on TNS findings. The research group said that younger, more affluent card holders were more influenced by air mile bonus programs.
While many consumers find it useful to earn some type of rewards – cash or points – for spending money on credit cards, some policymakers and educators worry that these types of enticing offers can attract young, first-time cardholders not yet ready for the responsibility of managing credit.
Recent legislation in a number of states aims to restrict the way card companies can interact with students on college campuses.
Similar Posts:
- Make the Most of Your Credit Card Rewards
- Cash Back Credit Card Considerations
- Airline Frequent Flyer Credit Card or Generic Miles Rewards Credit Card – Which is for You?
- UK reward credit cards: simple and useful
- Playstation Credit Card Review
Recent Comments