Among consumers that are currently in the market for a new credit card, 54% cite zero percent introductory rates as a feature that would prompt them to apply for a new credit card. Annual cash back rewards programs are cited by 50% of consumers, while 42% cite ID theft protection as a key motivator.
According to new survey data released by Fiserv’s Raddon Financial Group, no annual fees and low standard interest rates continue to remain popular credit card features. Sixty four percent of those in the market today cite no annual fees as a key motivator, and 58% cite low standard interest rates.
The survey also shows that credit card rewards programs are very popular with cardholders from all age groups, as 80 percent of consumers with a credit card say they are currently enrolled in a rewards program. Among cardholders, 56 percent are earning cash back rewards, while 40 percent earn redeemable rewards points, and 17 percent earn air miles and other travel-based rewards. For those earning rewards points, 67 percent prefer to redeem points on demand, and without date restrictions.
Cash back rewards are the most popular rewards program across generations, with 66 percent of Traditionalists, 60 percent of Baby Boomers, 50 percent of Generation Xers and 47 percent of Millennials with credit cards enrolled. Rewards points are second, with 41 percent of Traditionalists, 39 percent of Baby Boomers, 43 percent of Generation Xers and 37 percent of Millennials enrolled.
Although financial services trends often highlight the strong differences in preferences among different generations, it is clear that credit card rewards programs represent a rare point of alignment. Card issuers that allow family members to pool together cash back rewards, accrued points, or air miles and other travel-based awards are more likely to gain long-term loyalty from consumers.
For data, background and forecasts on Credit Card Rewards: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).