Rewards Play Major Role In Credit Card Customer Satisfaction

Tuesday, September 25th, 2018
Updated: September 30th, 2018
The content is accurate at the time of publication and is subject to change.

The inaugural J.D. Power Credit Card Satisfaction Study found that when it comes to choosing a credit card, it’s all about rewards. But just offering rewards isn’t enough: cardholders have to understand how to redeem them, as well.

Jim Miller, Vice President of Banking and Credit Card Practice at J.D. Power, said there’s more to building a satisfying rewards program than points, miles, or cash back offered. “Understanding how to redeem rewards—and having redeemed rewards recently—has a significant effect on satisfaction and loyalty levels.” He said credit card issuers need to educate their customers on how redemption works, and design their programs in a way that encourages them to redeem their rewards frequently.

Eighty-seven percent of credit card holders who participated in the J.D. Power study are enrolled in a rewards program; this includes the 48 percent of respondents who said they’d switched their primary card during the past year in order to have access to a more valuable rewards program.

Knowing how to redeem rewards is key

The study showed that 64 percent of respondents say they completely understand how to redeem rewards with their credit card program. Among this 64 percent, credit card satisfaction is 87 points higher than it is for folks who said they don’t fully understand how their rewards program works.

Satisfaction with their credit card program was strongly linked to how often cardholders redeemed their rewards, whether that was in the form of cash back, free flights, upgraded hotel stays, or other types of rewards. That said, cash back and airline tickets were the most popular rewards among those surveyed.

Those survey respondents who had redeemed rewards within the past month were the most satisfied with their credit card issuer, compared with those who had redeemed rewards three months ago, more than a year ago, or not at all.

Not all credit cards offer rewards

While rewards credit cards are popular, and customers enjoy perks like cash back, hotel points, and airline miles, some credit cards don’t offer rewards programs—and that’s okay.

People with limited or no credit, for example, may benefit from a secured credit card. This type of card does not typically offer rewards, but is helpful for those who are looking to build or repair their credit. They are increasingly popular among a wide variety of customers, and provide a necessary service as well as a stepping-stone to better credit—and approval for a rewards credit card.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

Latest Credit Card Rewards News

Friday, April 10th, 2020

The coronavirus pandemic has affected everyone. Many people were to remain without earnings. To support people, many banks have developed relief programs and offer customers, for example, defer payments, temporarily reduce interest, increase credit limits, etc. American Express don’t stand aside either. But in addition to the Financial Hardship Program, the issuer also decided to […]

Monday, March 2nd, 2020

Capital One keeps adding new rewards redemption options to its travel credit cards. To be more precise, holders of Venture and Spark credit cards can now transfer accumulated miles to even more loyalty programs. Surprisingly, new transfer partners are not airlines, as it could be expected, but large hotel chains AccorHotels and Wyndham Hotels & […]

Monday, January 6th, 2020

When the new year is on the way, everyone wants to not only resume the previous one but also draw up new plans and resolutions. This applies to your credit card rewards as well. If you are a happy owner of a cashback credit card with rotating quarterly categories, you probably were looking forward to December to find out what the issuer would prepare for you this time and where you could get more benefits.

Thursday, December 26th, 2019

This month, Capital One added an important extra redemption option for some of its credit cards. Such an introduction will surely appeal to lovers of shopping at online stores, and, more precisely, at Amazon.com. Yes, now owners of most Capital One credit cards get the opportunity to spend the rewards they earn on millions of Amazon items (except the restricted ones) due to a new partnership!

Thursday, September 19th, 2019

It has just been announced that Capital One and Walmart are preparing to release their new product – the Capital One Walmart Rewards Credit Card Program. The program will be available on two new co-branded credit cards that are specially designed for customers shopping at Walmart.

Best Credit Offer
Simmons Rewards Visa Signature®
Check off the cards you want to compare. Then click the Compare link to go to the comparison table.
Consumer Rating: 3 / 5
Horizon Card Services Horizon Gold Credit Card
Copyright © 2001-2020 BestCreditOffers.com All Rights Reserved.

*See the credit card's terms and conditions on the online application page. Note that this website may be compensated by credit card issuers when the visitor applies for a card through the links on this website. We do our best to maintain all information accurate and up to date. However, we do not warrant the credit card information won't change. Click the "Apply Online" button and review the current info on the secure credit card terms page.

Information in these articles is brought to you by BestCreditOffers.com. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.

The BestCreditOffers.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. BestCreditOffers.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the BestCreditOffers.com website are property of their respective owners.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions.

BestCreditOffers.com makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that BestCreditOffers.com may be compensated by the credit card issuers when the readers apply for a credit card through this site.

BestCreditOffers.com is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. BestCreditOffers.com does not review or list all available financial or credit offers.

Disclosure: Not an access card.

You've successfully subscribed!

Please specify the following:All these fields are optional

Thank you for providing this information! We will make sure our letters are useful for You.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.