QoD: Which credit card feature is most popular with consumers: 0% interest, 3% cash back or $500 cash sign-up bonus?

May 14, 2019
Question of the Day, Credit Cards, Research, Behavioral Finance

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. 

Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Creditcards.com): 

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 Ranzetta

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.