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, December 11th, 2020

This week, BlockFi, a crypto lending company, announced the upcoming release of its rather unusual credit card – the Bitcoin Rewards Credit Card. The card will become the first-ever credit card with cryptocurrency rewards. Until now, credit cards’ rewards programs could offer cashback, points, or miles. But earning credit card rewards in the form of […]

Monday, November 23rd, 2020

2020 can be safely called the weirdest year of the last decade. The pandemic has affected every corner of the world. And we can only guess what surprises await us in the last month of the year. However, something still remains the same (or almost the same) – Black Friday. It is not hard to […]

Friday, October 9th, 2020

This week marked the launch of another credit card. This time we are talking about the new cash back credit card from Venmo, a mobile payment service owned by PayPal. The card got a very simple name – Venmo Credit Card. The company announced its plans to roll out its first credit card a year […]

Friday, July 10th, 2020

Starting July 1, holders of Chase Freedom® credit cards can earn 5% cash back for purchases in special Q3 2020 bonus categories. The new quarter favors eligible Chase customers with enhanced rewards on Whole Foods Market and Amazon.com purchases. Chase states that all Whole Foods Market purchases made before October 1 will qualify for 5% […]

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 […]

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
Badcredit.com Badcredit.com
Copyright © 2001-2021 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.