Financial fitness is perhaps the most practical New Years solution – and a new study from GigaPoints, a platform that provides personal credit card recommendations based on a user’s spending, found that credit card use is becoming a strategy game, forever reason.
According to GigaPoint’s 2021 Credit Card Trends report, the results of a new Ipsos survey show how credit card usage is changing for Americans, with a focus on new generations of credit card seekers, the pursuit of cashback, and a strategic eye for card selection. The Ipsos survey was conducted in late December with a sample of more than 1,000 adults in the United States.
“The new year means new cards,” said GigaPoints. One in five respondents plan to open a new account in 2021. Of those surveyed who open new credit cards, GigaPoints said Gen Zers top the list at 40 percent and Millennials at 33 percent – men are two to one more numerous than women.
“Americans are signaling a year of change in credit card choices,” said Erik Budde, CEO and founder of GigaPoints. “With the COVID-19 vaccine going nationwide and the return of normalcy, we will see opportunity for growth in the credit card market, especially among Gen Z, millennials and men.”
Credit card rewards are all about cashback. His report states that seven in ten credit card users say credit card rewards are very important to them, and 73 percent of Americans prefer cashback over other types of rewards. And unsurprisingly, 60 percent of credit card holders say that by collecting credit card points and rewards they want to use their cards more often – and this is especially true for Millennials at 67 percent and Gen Xers at 66 percent.
The paradox of choice, however, is a problem as cardholders struggle to sift through the endless and complex reward offerings and point structures. “Although 57 percent of Americans believe their current credit cards are getting the maximum possible rewards, three in ten have a hard time understanding which reward programs are best for them,” said GigaPoints.
And the company added that cardholders are currently being incentivized: more than half (or 53 percent) of cardholders’ data said they would consider getting a new card or switching credit cards if they could earn more rewards. “Earning better rewards, at 41 percent, is the main reason for wanting a new card in the coming year among those who plan to do so,” said GigaPoints.
Budde stressed that cardholders see rewards as “a strong incentive to spend,” but many aren’t sure how to figure out which cards are best for their spending habits. GigaPoints is designed to take the guesswork out of choosing a credit card by quickly and securely providing users with data-driven recommendations that will allow them to get the most rewards or cashback based on their spend. “
And spending on cardholders during the pandemic signaled a more strategic outlook on what they’ll get back for their dollar. According to the report, nearly 19 percent of credit card users have indicated which credit card they use most often due to the COVID-19 pandemic, and that number climbs to 36 percent among millennial credit card holders.
GigaPoints stated that personal finances are “top of mind” for many Americans and “especially given the ongoing challenges of COVID-19, many are trying to save money wherever they can – and in the case of credit cards, existing US spending.” to maximize. ” as best as possible, ”said the brand.
However, when predicting the future, it is possible that the data will shift those preferences again. “Another 19 percent of Americans say that once COVID-19 is no longer a major problem, they expect Gen Z (35 percent) and Millennial (37 percent) to change which credit card they mainly use to earn points, rewards or cashback. Credit card users are once again leading, ”said GigaPoints.
And what exactly do cardholders want to earn with their points? Travel. “Almost 40 percent of credit card users currently save their credit card travel rewards for future use, up to 47 percent for affluent consumers.”
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