NEW YORK—A super-low interest rate might seem like the most appealing perk to dangle in front of would-be credit card-holders, but new research shows there are myriad other factors consumers take into consideration when deciding whether to use one card over another.
User experience benefits like cash-back rewards, data privacy and credit building tools are considered by 75% of consumers, according to Pymnts.com research conducted in collaboration with U.S. Bank division Elan.
The appeal of experience-type user perks was one of the central findings that came out of “The Convenience Catalyst: How Customer Experience Features Drive Credit Card Usage,” which took a close look into how consumer preferences drive credit card choice and usage patterns, Pymnts.com said.
While many consumers tap credit cards to bump up credit scores while managing debt and cash flow, the report found that in the past year, of the 168 million consumers who used a credit card, 137 million have a balance due every month. These regular credit card users are responsible for racking up 96% of U.S. credit card debt and also acquire 80% of cards, the report stated.
Additional Findings
Other findings include:
- Regardless of the reasons why people use credit cards, the research indicated that 70% of those seeking a card considered data security a top priority, and 75% of active users that are also parents look for credit-building tools when considering a card.
- Of those who are considered active card users, 64% look for a minimum of four features when seeking a card, and people living paycheck-to-paycheck and those living with children have the most demanding expectations from their credit cards, according to the report.
- Among people living paycheck to paycheck, 82% cited safety measures as “very” or “extremely” important, and 74% had similar sentiments regarding rewards programs. Other important considerations included the quality of customer service, which was mentioned by 64% of respondents living paycheck to paycheck. Interest rates and fees were mentioned by 62%.