Credit Card Rewards No Big Deal

Ann-Marie Vazzano

If credit card issuers stopped offering rewards, most American credit card holders wouldn't change their spending habits, according to a new Bankrate.com report. If card companies eliminated points, miles and cash-back rewards, 51% of American cardholders say they would keep using the card the same way they did previously. About one-quarter (26%) would use the card less often and 19% would stop using it entirely.

It turns out the points aren’t the reason American shoppers use credit cards: it’s the convenience of plastic over cash (at least for 40% of respondents). Financing emergency expenses came in second at 19%, while rewards points ranked third at just 14%. GP