Capital One is a great bank; in an already competitive credit card market, they seem to be pushing the bar for rewards ever higher — look at their new Cash Rewards card and popular airline miles card, Venture Rewards, as a couple examples of this.
Anyway. This morning they released the results of their latest quarterly Rewards Barometer survey, which shows how credit card users are choosing to redeem their rewards — and other related behaviours.
The numbers are pretty clear: more cardholders are going for cold, hard cash back. Give me my money!
From the release: “The quarterly Capital One (NYSE: COF) Rewards Barometer** revealed that rewards redemption increased during the third quarter – approximately four points from prior quarters – with 47 per cent of consumers redeeming at least a portion of their rewards in the past three months (43.1 per cent in Q1, 43 per cent in Q2). Results also indicated ‘free money’ continues to be the top motivation for consumers to earn and redeem rewards (60.6 per cent) and nearly half (41 per cent) of survey respondents had previously redeemed credit card rewards for cash. Most frequent use for cash rewards included applying it towards payment of a monthly credit card balance (39.5 per cent) and depositing cash rewards into a personal savings account (23.1 per cent).
‘The current economic landscape is weighing on consumers’ minds. Maximizing credit card rewards is one way consumers can offset the impact to their wallets,’ said Troy Jamison, Vice President of Loyalty Programs at Capital One. ‘A credit card rewards program that meets your spending needs is key, and cash rewards offer consumers additional flexibility.'”