Credit Card Usage and Rewards Insights

When it comes to selecting which credit card to use at checkout, rewards, offers, and perks are significant factors for many consumers. A lot of people tend to carry cards that provide basic incentives like cashback or points. These incentives are frequently linked to specific brands, retailers, airlines, or hotels. Interestingly, over 25% of shoppers switch among different cards based on the rewards they can earn.

On the flip side, there’s a growing interest in premium credit cards among consumers who are willing to pay extra for exclusive perks related to travel, dining, and lifestyle. These premium cardholders are typically very engaged with their cards—once they commit, they tend to use them frequently.

There are fresh benefits available now thanks to improvements in data analysis. These advancements enable highly personalized rewards, which help predict individual spending habits more accurately. The real breakthrough is in item-level data; this allows issuers and merchants to customize loyalty programs to fit the unique preferences of each cardholder. It could explain why nearly 75% of premium cardholders took advantage of at least one card-related offer in the last year.

Insights gained from research titled How do consumers decide which credit card to pay? from PYMNTS Intelligence, shed light on this topic. The study, based on a survey of 3,066 US consumers conducted in January 2025, explores what drives engagement, retention, and overall satisfaction, while also looking into how publishers can use enhanced analytics for better consumer relationships.

Key Takeaways from the Research

• Explore how cardholders use different credit cards strategically while shopping to optimize rewards and potentially pre-calculate the most beneficial options.
• Discover which types of credit cards are most popular among consumers taking advantage of offers associated with their cards.
• Notably, cardholders who are satisfied with their rewards are more likely to recommend their card to others.

About the Research

The research titled How do consumers decide which credit card to pay? stemmed from a survey of 500 credit union executives conducted from October 11 to November 22, 2024. It examines consumer preferences regarding credit card loyalty and rewards programs, based on insights gathered from a survey of 3,066 US consumers across various demographics conducted from January 10 to January 27, 2025.

For further details, access the report here.