QoD: Which credit card feature is most popular with consumers: 0% interest, 3% cash back or $500 cash sign-up bonus?
Hat tip to Beth Tallman for pointing out this study from Bankrate which is full of great question material:)
Answer: 3% cashback
- Why do you think the 3% cash back feature is so popular with cardholders?
- Do you think the most popular feature might differ for those carrying a large credit card balance (i.e., you were not paying off your credit card bill every month)? Why or why not?
- Which would you choose if deciding between these three features? Explain your answer.
Behind the numbers (Bankrate):
Thirty-one percent of Americans say that a 3 percent cash back offer is the most appealing credit card feature. Sign-up bonuses aren’t far behind: the second most popular feature is a $500 cash sign-up bonus (17 percent) followed by one worth $1,200 in airline or hotel credits (11 percent).
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About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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