A Lot of Credit Card Holders Do Not Shop Around

ElitePersonalFinance
Last Update: February 4, 2021 Financial News

According to the recent survey conducted by the U.S. News, many consumers don’t do their research before signing up for credit cards. Almost half of the surveyed people failed to research their cards to get more information about their benefits, terms, and conditions. Moreover, according to U.S. News & World Report, the global authority in rankings and consumer advice, more than half of the respondents do not regularly shop around for better credit cards.

U.S. News Money conducted a survey to find out details about cardholders‘ redemption habits and rewards preferences. These are the results they found:

  • The most popular reward is cashback, which is hardly a surprise, and airline rewards and gift cards follow it. As many as 43% of the respondents stated that they redeemed a statement credit or cash back during the past 12 months, while airline rewards and gift cards were redeemed by 23% and 12%, respectively.
  • The top three reasons for choosing a specific card were no annual fees, earning rewards rate, and loyalty perks or rewards.
  • A majority of cardholders fail to maximize the value of their cards. In addition, more than a quarter of the surveyed people carry a balance from month to month a minimum of seven times a year, which may cost them more than the rewards they can earn with their credit cards.

Even though there are so many different credit cards, consumers have to do their research if they want to find the card that fits them best.

Besides the survey, U.S. News publishes detailed credit card guides to help consumers use their credit cards more effectively.

About U.S. News & World Report

U.S. News & World Report is a digital information and news company that helps people make better decisions by informing them on important issues affecting their lives. The company focuses on education, money, travel, health, cars and news, publishing advice, news, rankings, and analysis to help consumers gain more knowledge throughout all life stages and make choices that will lead them to a better future. The company was founded in 1933, and it has headquarters in Washington, D.C. Today, more than 40 million people visit their website each month to read articles on various topics.

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