Consumers With Rewards Cards Not Reaping Full Benefits

Survey Reveals 41 Percent of Rewards Cardholders Rarely or Never Redeem

Credit Card Rewards

Dec 07, 2006, 00:00 ET from GMAC Mortgage, LLC

    HORSHAM, Pa., Dec. 7 /PRNewswire/ -- While over 50 percent of
 respondents in a recent national survey of American consumers reported
 having at least one or two rewards credit cards, more than 41 percent of
 these reward cardholders either rarely or never even bother to use their
 rewards. The results of the national survey sponsored by GMAC Mortgage also
 indicate that traditional rewards programs, such as airline miles, are
 losing steam as only 13 percent of all respondents in the survey ranked
 airline miles as valuable.
     "The results of this national survey send a loud and clear message that
 consumers are looking for a more compelling option when it comes to credit
 card rewards programs," said Mike Piazza, vice president at GMAC Mortgage.
 "Many consumers have reward cards, but the value of those cards is reduced
 when it comes to redeeming their rewards points. There is a lot of hassle
 value associated with trying to redeem miles or points."
     The GMAC Mortgage survey also revealed that nearly one in four rewards
 cardholders would use their rewards more often if it were easier to redeem
 their points. Seven percent of the rewards cardholders categorized the
 value of their credit card rewards as worthless and do not even bother with
 them. The recent survey of 3,000 Americans was conducted by market research
 firm Harris Interactive, on behalf of GMAC Mortgage.
     The recent release of the Equity Rewards(SM) MasterCard(R)
 along with the existing GMAC Mortgage Equity Rewards(SM) MasterCard(R) are
 two examples of rewards programs that give consumers a different option
 when it comes to credit card rewards programs. Exclusively available to
 GMAC Mortgage and mortgage customers, these Equity Rewards cards
 allow users to pay down their mortgage with each qualified retail purchase.
 Users earn one point for every dollar in net retail purchases charged to
 the card, and when they accumulate 2,500 points, they will receive an
 automatic principal reduction of $25 on their GMAC or mortgage.
 There are no restrictions on the number of points that can be earned and
 redeemed on an annual basis.
     To apply for the GMAC Mortgage Equity Rewards MasterCard(R) credit
 card, call 1-800-821-8758 and mention priority code L4W0 or apply online at and enter priority code C08P. To apply for a Equity Rewards MasterCard credit card, call 1-800-821-8758 and
 mention priority Code MB3R or apply online at
 and enter priority code MB36.
     About GMAC Mortgage
     GMAC Mortgage, LLC is among the nation's top ten residential mortgage
 originators and servicers. The company originates first and second lien
 residential mortgage loans through a nationwide network of 300 retail
 offices, direct lending centers, and Internet sites, and . GMAC Mortgage is an
 indirect subsidiary of GMAC ResCap (Residential Capital, LLC), a leading
 real estate finance company with diversified businesses covering the
 spectrum of the U.S. residential finance industry, from origination and
 servicing of mortgage loans through their securitization in the secondary
 market. GMAC ResCap ( ) is an indirect wholly
 owned subsidiary of GMAC LLC.