Amid concerns about rising inflation, many Americans find credit
card rewards useful in helping to ease inflation woes, a Wells
Fargo study reveals. With 92% of Americans concerned about rising
inflation (59% very concerned, 33% somewhat concerned), nearly half
of rewards cardholders (49%) are leaning on their credit card
rewards to help offset some of the costs of everyday purchases.
This press release features multimedia. View
the full release here:
Americans are leaning into their credit
card rewards to help offset rising costs (Graphic: Wells Fargo)
Almost three quarters (71%) of Americans have a credit card that
offers rewards, and 45% of rewards cardholders say their credit
card usage increased during the pandemic. What’s more, two-thirds
of rewards cardholders (65%) say they care about credit card
rewards now more than ever.
“The survey data underscores the significance of rising
inflation and supply chain issues, and how American consumers have
been affected in so many ways—not only their summer vacation plans
but also with everyday purchases,” said Krista Phillips,
EVP, head of Branded Cards and Marketing for Wells Fargo Credit
The national online survey of 2,008 adults was conducted by
Ipsos on behalf of Wells Fargo June 27-28, 2022.
Love-hate relationship with travel
The study revealed that Americans are planning vacations,
although over half (57%) report a “love-hate” relationship with
travel these days. For many (44%) the urge to travel has returned
with a vengeance, with a third (34%) reporting that they are
planning to “go big” on their next trip.
Americans are mostly vacationing by car. Two-thirds (66%) say
they prefer good old-fashioned road trips over flying with about a
third (31%) planning an automobile trip in the next six months,
compared to 22% who are planning to fly. Two-thirds (64%) of
respondents said they are cutting back on air travel because it is
too expensive while some (45%) are cutting back on air travel
because of COVID concerns. A quarter (24%) of rewards cardholders
used travel rewards to subsidize a vacation this year.
“Our customers tend to focus on rewards as a top credit card
preference, and that’s one reason we’re expanding our consumer
portfolio to include more competitive rewards offerings – like the
new Autograph Card,” Phillips said. “It starts with listening to
our customers to develop products that align with their lifestyles,
and right now many are looking for ways to make the most of their
everyday purchases. There is a big opportunity for savvy
cardholders to earn rewards on purchases they are already making by
using a card like Autograph, which offers unlimited 3X rewards
points on top spending categories including at gas stations – a
great incentive amid the current gas prices.”
58% of Americans planned a vacation in the past six months
and 63% are planning a vacation in the next six months
Planned a vacation in the past
Planning a vacation in the
next six months
Automobile vacation (Road trip)
Staycation (Vacation close to home)
None of the above
Still, for many, high gas prices and inflation are cramping
travel plans. A third (32%) said that high gas prices have forced
them to cancel a road trip this summer. Another third (37%) are not
planning any vacations at all in the next six months and 21% are
planning a “staycation” – a vacation close to home.
Credit Card Rewards Redemption
Even though people report using their credit card rewards to
offset the cost of everyday purchases, the study found that many do
not take full advantage of their card benefits.
- Only half (53%) of rewards cardholders say they focus on
high-value categories when they use their credit card.
- Thirty-eight percent of rewards cardholders have not cashed in
their credit card rewards or offers this year.
- Thirteen percent of rewards cardholders say they don’t really
understand how their credit card rewards program works.
“It’s important for consumers to fully understand all of the
benefits their rewards card offers in order to make the most of
their purchases and to help defray some of the cost of rising
inflation,” added Phillips.
After groceries, the top things rewards cardholders use their
credit card for is gas, restaurants, and travel/transit.
Rewards card owner (n = 1,273)
Top Three Choices
Restaurants and eating out
Travel and transit
Health, fitness, and beauty purchases
About the study
These are the findings of an Ipsos poll conducted between June
27-28, 2022. For this survey, a sample of 2,008 adults age 18+ from
the continental U.S., Alaska, and Hawaii was interviewed online in
English. The sample included 1,273 adults who have a rewards credit
card. The poll has a credibility interval of plus or minus 2.4
percentage points for all respondents.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a leading financial
services company that has approximately $1.9 trillion in assets,
proudly serves one in three U.S. households and more than 10% of
small businesses in the U.S., and is a leading middle market
banking provider in the U.S. We provide a diversified set of
banking, investment and mortgage products and services, as well as
consumer and commercial finance, through our four reportable
operating segments: Consumer Banking and Lending, Commercial
Banking, Corporate and Investment Banking, and Wealth &
Investment Management. Wells Fargo ranked No. 41 on Fortune’s 2022
rankings of America’s largest corporations. In the communities we
serve, the company focuses its social impact on building a
sustainable, inclusive future for all by supporting housing
affordability, small business growth, financial health, and a
News, insights, and perspectives from Wells Fargo are also
available at Wells Fargo Stories.
Additional information may be found at www.wellsfargo.com |
News Release Category: WF-ERS
version on businesswire.com: https://www.businesswire.com/news/home/20220802005244/en/
Sarah DuBois, 612-401-5869 Sarah.firstname.lastname@example.org
Helen Bow, 832-962-1452 email@example.com
Wells Fargo (NYSE:WFC)
Historical Stock Chart
Von Sep 2022 bis Okt 2022
Wells Fargo (NYSE:WFC)
Historical Stock Chart
Von Okt 2021 bis Okt 2022