Many Americans are missing out on credit card benefits. don’t be one of them

Many people use credit cards for everyday purchases, but only some consumers swipe their cards to earn rewards. Rewards credit cards make it easy to earn points, miles, or cash back on everyday necessities and expenses.

Find out how many Americans aren’t earning rewards with their cards and why you might want to start using a rewards credit card as part of your financial strategy.

74% of Americans have a credit card that earns rewards.

A recent study by The Motley Fool Ascent examined Americans’ credit card spending habits by generation. How consumers use rewards credit cards and the features they look for vary by generation.

For example, a feature most preferred by baby boomers is a card with no annual fee. On the other hand, most millennials focus more on credit cards with low interest rates. However, rewards credit card use is widespread across all generations.

Our survey results show that 74% of respondents use rewards credit cards. According to this statistic, 26% of Americans are not receiving credit card rewards. Other studies show similar trends regarding rewards credit card use.

A 2022 Wells Fargo study found that 71% of Americans have a credit card that can earn rewards. The study also found that nearly half (49%) of rewards card holders are using credit card rewards to offset some of the costs of everyday purchases now that goods and services are more expensive.

Why More Consumers Should Consider Using a Rewards Credit Card

Consumers who don’t have a credit card that offers rewards are missing out. You can easily receive rewards just by swiping your card as usual. Many no-annual-fee credit cards offer rewards, and many rewards cards offer low annual fees of less than $100.

No matter what type of card you use, it is not recommended to carry a balance. The best strategy is to use the card for everyday purchases and pay off your statement balance in full each month to avoid costly bills. credit card interest charge. Don’t take the risk of accumulating credit card debt, which can negatively impact your finances.

Earning rewards for everyday purchases is good for your personal finances because it requires very little effort. Many of these cards also include valuable benefits like purchase protection and extended warranties, giving you another reason to add a rewards credit card to your wallet.

How to Choose the Rewards Credit Card That’s Right for You

Considering a credit card that offers rewards? Buy the one that suits your needs. You should review your financial situation to decide whether now is the right time to apply for a new credit card. You’ll also want to determine whether you can afford the annual fee. If not, you should look into no annual fee cards.

It’s also wise to consider your highest spending categories. Choosing a card that offers rewards for purchases that fit your typical spending habits can help you earn more rewards, faster. If your spending habits are varied, a flat rewards card is best.

Finally, research your rewards redemption options. Do you want to earn rewards you can use on travel, or are you looking for a simple cash-back credit card? Some credit card issuers offer more flexible rewards programs, so explore different programs before applying for a card.

Want to know more? Check out our list of the best rewards credit cards.

NOTE: Our top-tier cashback cards now offer a 0% introductory APR through 2025.

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