WASHINGTON—Responding to criticisms that credit card rewards benefit only wealthier consumers, the American Bankers Association has countered with a report that says card rewards are accessible, valuable and well-understood by consumers across all income levels.
According to the ABA report, 77% of lower-income cardholders have an active rewards credit card, just a slightly smaller percentage than all cardholders (86%). It also suggests rewards card use is more closely related to credit score than income, with the ABA saying it found income has little bearing on a cardholder’s credit score.
“In fact, lower-income customers with prime and super-prime credit scores are more likely to have an active rewards card than higher-income subprime cardholders,” the ABA study said.