More than any other factor, rewards programs for credit cards drive usage and interest in signing up for new accounts. But research by J.D. Power indicates that rising credit card debt and the continuing deterioration of consumers’ overall financial strength have tainted how satisfied people are with their card rewards.
Among the seven factors that the research covers to assess overall satisfaction with cards, the rewards people earn came in dead last.
The annual study separated satisfaction with rewards earned from satisfaction with rewards redemption for the first time. The latter scored higher.
Getting a handle on any dissatisfaction with rewards is critical to issuers because, as J.D. Power found in its 2023 U.S. Credit Card Satisfaction Study, the leading reason why consumers switch to a new card is to enroll in a better rewards program.
continue reading »