1 in 4 Americans don’t use their credit card rewards, according to survey
Jan 7, 2025, 10:59 AM
FILE - Credit cards as seen July 1, 2021, in Orlando, Fla. (AP Photo/John Raoux, File)
(AP Photo/John Raoux, File)
SALT LAKE CITY — According to a new survey by Bankrate, nearly a quarter of adults didn’t redeem their credit card rewards in the past year.
DMBA financial planner Gerika Espinosa said it’s probably not because someone forgot to cash in on their rewards.
“One of the main reasons that people wouldn’t cash in every year is because they save up from year to year,” she said. “I know some people that will go on a vacation every three years with their credit card points or some people will buy Christmas every couple of years. Sometimes people forget, but I think that’s not usually the case for it.”
While credit card rewards are nice, Espinosa said to watch for annual fees that could make it not worth getting a rewards card.
“There’s a lot of promotions out there, but people need to check the annual need to check the annual fees for them,” she said. “It doesn’t make any sense to backtrack with that.”
Espinosa said cashing in on these rewards can be like getting free money if the card is used correctly.
“But I wouldn’t tell people to open [a credit card] up,” she said. “People tell me all the time, ‘Well, I’m going to open up a new credit card and it’s going to save me X, Y and Z and then they end up getting more into debt. Those I would, obviously, discourage. But, I have seen work well … but it does take a lot of maintenance.”
According to the survey, 40% of Americans don’t have a rewards card. The survey also found that cashback is the most popular rewards option for cardholders.
Josuee Sanchez is a reporter for KSL NewsRadio.
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