Rich Americans Prefer Cash-Back Credit Card Rewards

AUSTIN, Texas, Feb. 9, 2015 /PRNewswire/ -- Wealthy Americans and the masses want the same thing from their credit card rewards: cash back. According to a new CreditCards.com survey of affluent Americans, 60% of credit cardholders with investable assets of $100,000 or more say cash back is their favorite credit card perk, while just 22% said they preferred frequent flier miles. (A recent Fidelity survey found a similar preference for cash back -- 63% -- among all American credit cardholders.)

Other perks barely made a ripple. Free hotel stays were the choice of 7% of those surveyed, while merchandise was preferred by just 5%. Meanwhile, concierge services, special access to experiences, airport lounge admission and companion airline tickets combined for just 3% of the vote.

Other key findings from the survey include:

• Affluent women prefer cash back over miles nearly four-to-one (67% to 17%). Wealthy men prefer cash back more than two-to-one (56% to 25%).
• Two-thirds of wealthy millennials prefer cash back, while just 14% would opt for miles.
• The wealthiest Americans are the most likely to prefer miles. Nearly one-third of Americans with investable assets of $500,000 or more said they'd choose miles over cash back. However, a majority of Americans in that group (53%) said they'd prefer cash back.

"Whether they're in the 1% or they're living paycheck to paycheck, credit cardholders must follow some basic rules to get the most out of their cash back card," says CreditCards.com Senior Industry Analyst, Matt Schulz.

"Cash back is king, but Job No. 1 for anyone with a cash back card is to pay your balance off in full each month," Schulz said. "If you don't, interest charges can quickly surpass whatever you might earn in cash back."

Other rules for cash back cardholders include:

• Pay attention to rotating categories. Many cash back cards – such as the Chase Freedom or Discover It cards -- offer up to 5% cash back on certain categories each quarter. However, if you don't opt in each quarter, you might miss out.
• Make sure it fits your lifestyle. Don't want to put in the time to keep up with rotating categories and other special offers? Opt for a simpler card, such as the Capital One Quicksilver Cash Rewards card, which gives you 1.5% cash back on every purchase every day.
• Look for sign-up bonuses. They aren't just for miles cards anymore. The American Express Blue Cash Everyday card from American Express gives you $100 back after you spend $1,000 on the card in the first three months.
• Be wary of fees. Excess fees can easily eat up any cash back rewards that you might accrue. If you've got good credit, you should be able to shop around and uncover some good deals on cards with no annual fee.

The survey was conducted by ORC International and can be seen in its entirety here:

http://www.creditcards.com/credit-card-news/wealthy-cash-back-rewards.php

Methodology
The survey was conducted by ORC International from January 15-21, 2015, and included 793 U.S. adults with investable assets of $100,000 or more. The definition of investable assets specifically excludes the value of the respondent's primary residence. Respondents were screened to ensure they make or are significantly involved in making the household's financial decisions.

About CreditCards.com:
CreditCards.com, named a "Best Site for Managing Your Credit" by MSN Money, is a leading online credit card marketplace, bringing consumers and credit card issuers together. At its free website, consumers can compare hundreds of credit card offers from America's leading issuers and banks and apply securely, online. CreditCards.com is also a destination site for consumers wanting to learn more about credit cards. Offering advice, news, features, statistics and tools, CreditCards.com helps consumers make smart choices about credit cards. In 2014, over 22 million unique visitors used CreditCards.com to find the right credit card to suit their needs.

For More Information:
Kayleen Yates
Senior Director, Corporate Communications
[email protected] 
917-368-8677

SOURCE CreditCards.com

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