In today’s dynamic financial landscape, choosing the right credit card is a pivotal step toward achieving your financial goals. Whether you’re a seasoned cardholder or a newcomer to the world of plastic, understanding the factors that cater to your specific needs is paramount. From enticing rewards programs to low-interest rates and flexible payment options, the array of offerings can be overwhelming.
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Data for today’s episode is provided by Javelin Strategy & Research’s Report: Understanding Credit Card Rewards: A Successful Model Under Threat
Top 5 Factors Desired by Credit Card Applicants
- No annual fee – 62% of consumers seeking a new credit card
- An attractive points/rewards program – 45% of consumers seeking a new credit card
- Good credit line – 42% of consumers seeking a new credit card
- Low APR (interest rate) – 40% of consumers seeking a new credit card
- The card had strong fraud protection features – 39% of consumers seeking a new credit card
About Report
Credit card rewards programs are expensive and intricate for issuers to maintain, but they are also enormously popular with cardholders and a significant driver of customer acquisition. This Javelin Strategy & Research report looks at the current landscape for rewards programs, including possible responses by the industry should Congress pass the Credit Card Competition Act. The legislation, if enacted, could put rewards programs on a path toward significant reductions in offerings and inclusion.
In the meantime, card issuers continue to look for ways to innovate with their reward programs for cardholders, including early access to premier events and experiences, bonus rewards days for spending, and even rent-based cashback rewards. Rewards related to travel and money back to customers continue to be strongly popular with cardholders.