Rewards Give Credit Cards an Edge Over Debit

Most of us know the basics of how a credit card works: pay with a credit card now, pay the card off later. If you don’t, the card issuer charges you interest and/or fees. This is how credit card companies make money. So how do companies convince consumers to use credit instead of debit?

While debit cards are still used more frequently for routine purchases, Americans are spending more overall on credit cards. A recent survey showed that, after many years of steadily increasing popularity, 2016 saw credit surpass debit as the preferred method of payment for Americans. The main reason? Perks.

Almost 60 percent of those surveyed said that rewards were their favorite thing about their credit cards – twice as popular as any other credit card feature. Credit card companies are now in constant competition to attract new customers with better perks. While many prefer to rack up travel points, cash rewards are still by far the most popular benefit.

With the financial crisis nearly a decade behind us, consumers are not as concerned about taking on debt. Credit card companies have also made it less difficult to obtain a credit card.

Older Americans still prefer debit, and younger Americans are often not eligible for credit cards. However, the 25 to 44 age bracket, which includes Millenials, is using credit more than ever. As credit card companies compete to offer the best rewards, the typical Millenial will carefully compare his or her options and choose a card that provides the best benefits.

However, anyone taking on a new credit card should know that the rewards of a credit card are only worthwhile if the card holder has the means to pay off the card, as rewards cards usually have higher interest rates and can charge hefty annual fees.

If you have gotten in trouble with credit card debt. Contact the Law Offices of Richard Adams for help. Richard Adams serves the Miami Dade are including Miami Lakes, Coral Gables, Hollywood and West Palm Beach, Florida.


Steverman, Ben. The Credit Card Rewards War Rages. Are You the Loser? (2017, June 26). Retrieved from


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