Credit card rewards can suck you in until you realize the once you earn the points or miles required for the stuff or trip, it disappears from the redemption catalog. However, cash is king when it comes to credit card rewards.
A study conducted by Ally Bank found more than half (58%) of survey respondents who have a credit card said they preferred cash back rewards, topping interest in travel rewards, store promotions and introductory interest rates or bonus rewards.
The study also found that two thirds of those respondents (66%) would be interested in a credit card that would give an additional bonus on cash back rewards if those rewards were placed into a bank account.
Additionally, the survey found 80% of consumers with credit cards said they would prefer to have multiple financial products, (such as a bank account, loan or credit card) with the same bank if they earned rewards for doing so.
The Ally survey also asked respondents about missing out on rewards offered by their credit card company. Interestingly, only 36% of consumers with credit cards use their card for daily purchases, often missing out on rewards on purchases like gas and groceries. Another 28% of respondents admitted to losing out on rewards because they expired or were too difficult to cash in.
Across all age groups, millennials who do use credit cards (78%) were least likely to have lost out on credit card rewards because they expired or it was too difficult to use them. But millennials may be missing out on rewards by simply not using credit cards. Of those millennials surveyed by Ally, 58% said they don’t even own a credit card, compared with 44% of Gen X and 43 percent of Baby Boomers.