NEW YORK–More Americans are using their credit cards purely because of rewards loyalty programs, according to Finder’s second annual Chasing Points study.
According to Finder.com, it found an estimated 87.1 million (39%) of American adults admitted to spending on a credit card just because of a loyalty program – a 21% increase from last year’s 71.7 million.
The average amount people spend is $1,814.75 per person, which amounts to $158 billion nationally. That figure represents a 10% decline from the $175.8 billion found in the survey one year earlier, the company said.
According to Finder.com, its research found people are most likely to chase points when buying groceries (28.1%), dining out (23%) and on hotels (16.9%).
The survey found men (21%) are more likely than women (18%) to have purchased something on their credit card just for the loyalty program.
Men are also likely to spend more. Men spent an estimated $1,979.82 on average, while women spent just $1,573.63, Finder.com reported. However, when chasing points, women outspend their male counterparts in five of the 11 categories, including flights, hotels, household items, cosmetics and fragrances and other.
Millennials Especially Like Points
The generation most committed to racking up loyalty points? Millennials, Finder.com said, with 35.06% admitting to using a credit card for points, compared to Baby Boomers (30.27%) and Gen X (23.03%). However, Gen X are the biggest spenders, having spent an average of $1,750.47 per person, followed by Millennials ($1,355.05) and Baby Boomers ($1,240.69), Finder.com said.
“While there can be advantages to earning rewards, these programs can lead to debt-related results if not careful,” said Finder.com Consumer Advocate Rachel Dix-Kessler. “With the number of people using credit cards just for rewards rising, it’s more important than ever for consumers to do their homework.