Credit Cards Blog

Finance Blogs » Credit Cards » Credit card rewards disappoint

Credit card rewards disappoint

By Marcie Geffner · Bankrate.com
Wednesday, April 20, 2011
Posted: 9 am ET

Rewards are a key factor that consumers might well consider when they decide to apply for a new credit card. But in fact, many consumers who have a rewards card aren't all that thrilled with the rewards.

That was the chief finding of a recent survey of 1,045 adults conducted by BIGresearch for Capital One Financial Corp., a financial company in McLean, Va. The survey found only 22 percent of consumers who said they had a rewards card were "completely satisfied" with the program.

Here's a summary of the other findings:

  • Fifty-seven percent of those surveyed said they hadn't redeemed any reward points in the last three months.
  • Twenty-eight percent of those who'd wanted to redeem points but hadn't, cited difficulty in doing so as the reason.
  • Twenty-seven percent of those who'd wanted to redeem points but hadn't, cited a lack of attractive redemption options as the reason.
  • Nineteen percent rated the flexibility of redemption options as fair or poor.
  • Twenty-three percent rated their ability to earn rewards quickly as fair or poor.
  • Fifty-eight percent said they didn't have enough points to take a trip this spring.
  • Twenty-nine percent said blackout dates would preclude their doing so.
  • Fifty-seven percent said the perception of "free money" was their top motivation to earn and use credit card rewards.
  • Forty-seven percent preferred domestic airline tickets to international travel as a reward option.
  • Thirty percent chose international airline tickets over domestic travel.
  • Seventy-two percent wanted the ability to redeem points for cash.
  • Fifty-four percent had actually done so.
  • Forty-seven percent said they could redeem rewards for electronics, housewares or other merchandise.
  • Thirty-two percent said they wanted that option.

And, finally:

  • Thirty-one percent of those surveyed said they'd choose the Royal Wedding at Westminster Abbey as their preferred destination for a reward points trip.
  • Seven percent said they'd pick the annual Easter Egg Roll at the White House.

Obviously, royalty rules.

Follow me on Twitter: @marciegeff

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
3 Comments