TROY, Mich.—More than a year after the pandemic hit, consumers are adopting all sorts of new financial habits, including shopping around for a new credit card, a new report reveals.
Data from J.D. Power’s 2021 Credit Card Shopping Study found that the welcome bonus ranks as the top reason why people are signing up for a new credit card, with consumers eager to earn rewards. But others are looking to credit cards as a financial crutch, noted CNBC in its analysis.
According to the June 2021 J.D. Power Banking and Payments Insight, nearly a quarter (23%) of respondents said that the pandemic was a factor in their decision to shop for a new card, with 4% pinpointing it as the primary reason.
J.D. Power notes that this segment of new credit cardholders are revolvers, or customers who carry balances month to month and pay them off over time. They report being worse off financially in 2021, with credit scores of 659 and below, CNBC noted.