Study: Rewards cards have taken over the market
By Juan Rodriguez and Laura Mohammad | Published: October 21, 2014
Rewards cards increasingly dominate the credit card market, making up more than half the new accounts Americans have opened since 2012, a study by the American Bankers Association shows.
Transactions on reward cards rose almost 50 percent from the first quarter in 2007 to the same period in 2014, climbing from $580 billion to $1.15 trillion Meanwhile, spending on nonrewards cards was down 32 percent, from $672 billion to $460 billion.
Rewards cards are no longer reserved for those with the best credit scores, either. Of all new cards going to consumers with credit scores lower than 660 in 2014, almost two-thirds were rewards cards, an increase from 37 percent in the first quarter of 2011, the study found.
The study, released Sept. 30, 2014, is based on research performed by Argus Information & Advisory Services LLC, and looks at figures from the first quarter of 2007 to the first quarter of 2014.
To use the graphic on your site, use the following code:
- Breaking the budget to go on vacation – Millennials most likely to take on debt for a summer experience ...
- Infographic: How many households have at least one card? – Your annual income and education level may indicate the chances of whether or not your household has a credit card ...
- Infographic: In divorce, women's credit suffers more – More than half of recently divorced women said their credit score tanked during marriage, compared to just 42 percent for men ...