NEW YORK—U.S. consumers may love rewards cards, but a new analysis suggests most aren’t using most of the rewards they’ve accumulated.
A new study from Lending Tree shows 87% of all U.S. credit cardholders have at least one piece of plastic that enables them to earn travel, cash back, and other credit card-related rewards.
But most Americans aren’t using the card rewards perks they’ve earned, according to a Lending Tree study that found 70% of all U.S. rewards credit cardholders have unused cash back rewards, points, or miles.
“Of that group, the majority (49%) have unused cash back rewards, while 13% have unused airline miles and 11% unused fuel points,” Lending Tree reported. “That’s not all. The report also notes that 40% of rewards credit cardholders haven’t cashed in on any rewards in the past year.”
Additionally, Generation Z consumers redeem credit card rewards more frequently than other generations, but Baby Boomers are most likely to do so annually, the study found.
Other Generational Behavior
Seventeen percent of Gen Z cash in on rewards every month (or more often), compared with 11% of Millennials and 9% of Gen X and Baby Boomers. However, Baby Boomers were most likely to redeem credit card rewards in the past year (65%, versus 62% of Gen Z), Lending Tree found.