Consumers Prefer Airline Credit Cards, Study Says
MarketResearch.com’s Packaged Facts division released a study showing that consumer demand for co-branded airline credit cards has increased dramatically over the past several years. Airline credit cards offer cardholders frequent flyer miles and points toward travel accommodations to encourage more frequent card use.
The Packaged Facts study of 6,500 credit card customers shows that the airline travel rewards credit card strategy has worked. The participants in the study reported a 73% increase in preference for co-branded airline credit cards, with 93% citing the cards’ value and features as the reason for the increase.
Almost one-quarter of all credit cards issued today include some sort of rewards program. Credit card rewards programs enable consumers to earn cash-back, travel points, free gasoline, and other perks proportional to card use. With the great variety of rewards cards available, there’s a rewards card to suit everyone’s needs.
Rewards cards are particularly helpful if you pay off your balance in full every month. However, the interest rates on rewards cards are typically slightly higher than traditional credit cards. Because of the higher interest rates, you should avoid rewards cards if you plan to carry a balance. The extra rewards offered by the cards fail to offset the greater costs of the higher interest rates.
