Americans Prefer Credit Cards to Cash, But Not For the Rewards

If you’re reading this blog, then most of you get a new credit card to take advantage of the sign up bonus, cash back or points and miles. Most likely, you also use your credit cards in a way that maximizes your cashback/points/miles. But that’s not the case for most Americans. The reason Americans love their credit cards is simply because it’s more convenient to take out plastic, than a few bills.


“Americans like the convenience of credit cards much more than the rewards,” according to a report. “If credit card issuers stopped offering rewards, most American credit cardholders wouldn’t change their spending habits.”

The reasons Americans use credit cards

  • 40% said “convenience”
  • 19% said “financing emergency expenses”
  • 14% said “earning rewards”

Most Americans would keep using their credit cards the same way if their card providers did away with reward programs, the study found.

If the credit card provider removed the rewards program

  • 51% said “they wouldn’t change their spending habits”
  • 26% said “they would use the card less often”
  • 19% said “they would stop using it entirely”

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