Bankrate: Credit Card Rewards Won’t Affect US Cardholder Spending

Recent regulatory changes concerning the use of credit cards in Europe have prompted some issuers there to stop offering rewards such as cash back, frequent-flier miles, and rewards points.

If US issuers will do the same thing, most American credit cardholders say they won’t change their spending habits, according to a recent report by Bankrate.

The study found that 51 percent of credit cardholders in the US will continue using their card in the same way as before if their issuer gets rid of rewards.

Twenty-six percent say they will cut on their credit card spending, while 19 percent will totally stop using credit cards.

When asked about the main reason why they use credit cards, 40 percent of respondents say they are easier to use than cash. Nineteen percent say they use credit cards for emergency expenses.

Fourteen percent of participants cite earning rewards as their main motivation for using credit cards, a slight increase from 10 percent in a 2008 Bankrate study.

This increase does not come unexpectedly as credit card issuers have stepped up their reward programs in the past years.

The survey also found that only one in nine American credit card holders are “very” or “somewhat” likely to allow their issuers to share their information with outside parties in exchange of more rewards. Seventy-two percent are “not at all” likely to allow this, the study found.