Although they are notorious for having higher interest rates, rewards credit cards are still incredibly popular with consumers. According to a study by Cardbeat, rewards cards are as popular today as they have ever been. Rewards programs increased 6% between February 2011 and February 2012. The study shows that 76% of responders state that the value of their rewards program has not changed and 14% indicated that the value actually increased.
The study also showed that 80% of responders use their rewards cards most frequently and view their rewards as the main reason for having the cards. The redemption process for consumers also seems to be a reason to keep using rewards cards. Most responders, 93%, indicate that redeeming their rewards was a positive experience.
Despite the growing popularity of rewards cards, low rate cards will not disappear anytime soon. There is still a huge market for low rate cards and that will not change.
