MIAMI–A new survey offers insights into how consumer thinking around credit card rewards is evolving, while an accompanying analysis identifies which cards it says offer the best travel benefits.
Among the cards mentioned in the report is one issued by Navy Federal.
Wallethub’s new report, titled 2024’s Best Credit Card Rewards Programs, is based on a nationally representative consumer survey gauging people’s opinions on all things rewards.
Key Findings
Among the key findings:
- Incentivized Overspending: 61% of people think credit card rewards encourage overspending.
- Inflated Interest in Rewards: Nearly four-in-five people say inflation has made them more interested in earning credit card rewards.
- Unfairly Rewarding: More than two in five Americans think credit card rewards programs are unfair.
- Inflation Outpaces Rewards: 65% of Americans think their credit card rewards are not keeping up with inflation.
- Opportunistic Bonus Seekers: 35% of Americans apply for a new credit card at least once a year to take advantage of sign-up bonuses.
- Love for Companies with Bonus Rewards: Three in five people go out of their way to spend money with companies that give them extra credit card rewards.
- It Pays Big to Compare Cards: The best rewards credit cards can yield up to $1,120 more than the worst rewards cards over the first two years.
- Best Issuer: Capital One has the best credit card rewards program for the eighth year in a row, earning an average WalletHub score of 92%.
About Travel Cards
Wallethub said if further found in comparing cards:
- Earning Potential: The best rewards credit card can save you up to $1,120 more than the worst rewards card over the first two years.
- Best Redemption Option: Redeeming credit card rewards for travel is the best deal, yielding 10% more value than merchandise, the worst option, Wallethub said.
- Earning Policies: Capital One and Wells Fargo have the best rewards-earning policies, with no earning limits and no loss of rewards if you miss a payment.
- Redemption Policies: Credit card companies seem content to continue using redemption restrictions to limit the cost of rewards programs. None scored above 80% for their redemption policies.
- Eligibility & Transparency: Discover, PN.C. Bank, Navy Federal Credit Union, Security Service Federal Credit Union and Synchrony Bank set the clearest expectations by stating rewards terms and restrictions up front.
- Rewards Minimums: 51% of credit cards require cardholders to earn a minimum amount of rewards (such as 1,000 points or $25 cash back) before redeeming.
- Conditional Rewards: 22% of rewards credit cards have earning rates that vary based on amount spent or time period.
The full findings can be found here.
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