Most Consumers Want Their Credit Card To Provide Rewards For Everyday Purchases Like Groceries And Gas (2024)

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Our survey sought to determine the key motivating factors for respondents’ recent credit card applications. Pre-qualified offers (33%) and recommendations from friends/family (18%) were the two most common answers. However, the largest percentage of respondents (34%) reported that nothing in particular motivated them to apply for specific cards.

When shopping for a credit card, the majority of respondents (57%) indicated they are somewhat more inclined to choose a card provided by a bank or financial institution they already have an account with. However, more than a third of respondents (37%) were indifferent and a small percentage were actually more inclined to find a new bank for their next card.

Respondents also selected how often they apply for credit cards. Over half—59%—don’t get new cards very often, reporting that they apply for credit less than once every two years. The second largest contingency (20%) said they apply for a new card every year or two. Only a handful get credit cards more often: 10% of respondents reported getting a new card every 6-12 months, 7% every 3-6 months and 5% every 1-3 months.

Welcome bonuses are a driver for a smaller but still significant percentage of new applicants. Of those surveyed, 12% acquired a credit card to receive a sign-up bonus. Those respondents were then asked what makes a welcome bonus most attractive to them. The top responses include:

• High bonus amount: 66%
• Low spending requirement to receive the bonus: 33%
• Long period of time to earn the bonus: 16%

When asked what fees consumers check when applying for a new credit card, annual fees (73%) and interest rates (60%) were the most reported answers. A much smaller percentage of respondents (26%) considered late payment fees, returned payment fees (12%) and foreign transaction fees (8%) as major factors when applying for a new card.

An applicant’s credit history can influence which cards someone is qualified for and therefore which cards they consider. When asked how their credit score impacted their experience when applying for a new credit card, 37% of survey respondents reported credit scores were a factor on whether or not they were approved, 29% in obtaining a higher credit limit and 20% in getting a lower APR.

However, 28% of respondents reported that their credit score did not impact their card selection, approval or specific terms. Applying for cards appropriate to your situation is one way to avoid surprises.

When asked about their primary motivation for getting their most recent credit card, 33% listed “earning rewards on daily purchases”. The most common kind of new credit card, however, was a cash-back card, with 44% of survey respondents acquiring this type of card most recently.

Cash back is so important to consumers that a full third of respondents indicated that cash rewards were the most important feature on their card, beating out credit cards with no annual fee (29%) or introductory offers.

Survey participants also selected the spending categories on which they wanted to earn rewards. Groceries was the top reported answer at 47%, gas at 36%, dining out or food delivery at 29% and travel at 24%.

The right credit card is going to be the one that most closely aligns with your needs and financial situation. Before comparing cards, take stock of your financial goals. Are you looking to earn cash back to offset your spending? Would you prefer a travel rewards card to earn points or miles for a future trip? Maybe a 0% APR card would help you pay off a large debt.

Once you’ve zeroed in on your needs, examine your financial situation to determine the types of cards for which you are likely to be approved. Most new applicants consider credit score and income when looking at new applicants, so you’ll want to know that information before applying. If your credit is good or excellent, you stand a strong chance of being approved for the best credit cards. If you have bad credit, or you are new to credit, there are still numerous options available. But being realistic about your options improves your odds of approval.

Be aware that applying for a credit card will result in a hard inquiry on your credit report. This is a small, short term hit to your credit which usually disappears within a few months. Still, multiple hard inquiries can have a negative impact on your credit score, so you shouldn’t apply for more cards than you need. Many issuers offer pre-qualification or preapproval tools to let you know where you stand before applying.

It may seem counterintuitive to use a credit card to save money, but with responsible usage it’s more than possible. To be clear though, “responsible” is the key word in that sentence. Credit cards are a valuable asset only when they are handled with care. Amassing large debts, failing to pay your statement every month or buying more than you can afford to chase rewards could have potentially catastrophic, long-term effects on your finances.

Assuming you manage your credit well, having a card which rewards your everyday spending will net you solid returns. Let’s say you spend a high percentage of your disposable income at grocery stores. If you hold a grocery rewards card, you could earn robust returns on that spending. The Blue Cash Preferred® Card from American Express (Terms apply, see rates & fees), for example, earns 6% cash back back on your grocery spending up to $6,000 per year. That’s $360 back to you annually—assuming you max out the spending cap. More to the point, that’s $360 you would not have earned if you paid for those groceries with a debit card or cash.

But it doesn’t have to be grocery spending: There are all kinds of cards that target all types of consumers. You can earn rewards with credit cards for gas, online shopping cards and even cards for specific stores. If you can identify the areas where you spend most, you can find a card that rewards those expenses. In the end, that means money back in your pocket for spending you were going to do anyway.

This online survey of 1,000 American adults who own a credit card was commissioned by Forbes Advisor and conducted by market research company OnePoll, in accordance with the Market Research Society’s code of conduct. Data was collected from Feb 29 to Mar 4, 2024. The margin of error is +/- 3.1 points with 95% confidence. This survey was overseen by the OnePoll research team, which is a member of the MRS and has corporate membership with the American Association for Public Opinion Research (AAPOR).

To view rates and fees for Blue Cash Preferred® Card from American Express please visit this page.