RateSupermarket.ca Finds Most Canadians Use Credit Card Rewards: Older Canadians lead the way when it comes to maximizing credit card rewards
September 12, 2019 (PRLEAP.COM) Business NewsTORONTO, September 12, 2019 - A whopping 85 percent of Canadians are seeing returns from their rewards credit cards according to a recent study from RateSupermarket.ca. The study found that it is older Canadians who are the best at reaping rewards from their cards.
Currently, there are over 74 million active credit card accounts in Canada, with the average Canadian owning two credit cards and 8 in 10 holding a rewards credit card. But while nearly one third of Canadians are seeing returns of over $500 each year from their cards, another third has redeemed less than $100.
The survey discovered that:
"We encourage Canadian consumers to be clear and realistic about what they want their card to do for them. For example, while a travel rewards credit card may be attractive to a student, it may be more of an aspirational choice than a realistic one." said Sara Kesheh, Vice President of Money at Ratesupermarket.ca. "Students should focus on reducing their tuition debt and building their credit. That may mean a cash-back card rather than a travel card that likely carries a $120 annual fee."
Retirees Lead the Way
Older Canadians have taken to credit rewards in greater numbers than their younger compatriots. Just 73 percent of Canadians aged 18-34 own a rewards card compared to 83.5 percent of those aged 65 and over. It's not just uptake where older Canadians are leading the way either, nearly 15 percent (14.8) of older Canadians with a rewards card have redeemed more than $1,000 worth of rewards. Only 6.7 percent of those aged 18-34 can say the same.
Income Brackets Affect Usage
Rewards cards are also more likely to be held by higher income earners, with 90 percent of Canadians whose household income is over $80,000 owning at least one. That number drops to 79 percent for Canadians who earn between $40,000 and $79,000 each year and drops to 61 percent for people with a household income under $40,000.
Choosing the Right Card Matters
With an influx of more personalized, concentrated rewards products into the Canadian marketplace, it has become ever more important for Canadians to choose the best credit card for them. While personal finances and financial goals factor into decision-making, the type of rewards a shopper is interested in can also influence which card they should choose.
Launched in 2008, RateSupermarket.ca is Canada's one-stop shop for the best rates on personal finance products; offering over 11 million Canadians the best mortgage rates, credit cards, bank accounts and GIC rates. Headquartered in Toronto, Ontario, RateSupermarket.ca is located at 360 Adelaide Street West, Suite 100, Toronto, ON, M5V 1R7.
About the Survey
An online survey of 1,524 Canadians was completed between July 26-29, 2019, using Leger's online panel, LegerWeb. The margin of error for this study was +/-2.5%, 19 times out of 20.