Over half of people prioritise credit card rewards over interest rates

New research from Compare the Market reveals that more than half (52%) of people would be willing to switch credit cards if they found one offering better rewards aligned to their personal needs, even if it came with a higher interest rate.

Nearly half of respondents (46%) value cashback as the most important credit card reward, followed by a quarter (24%) who prioritise points-based systems for shopping vouchers, and over a fifth (21%) who prefer travel-based rewards.

Younger credit card users are leading the way when it comes to being willing to switch credit cards for better rewards, despite facing higher interest rates, with 80% of 25-34-year-olds likely to switch provider if they receive better rewards, compared to 30% for those aged over 55. Just over 70% of people view rewards as a key factor when selecting a credit card provider, with this figure reaching 95% for 25-34-year-olds.

Ahead of the start of the summer travel period, people find credit card perks, such as travel insurance or protection, particularly appealing. Respondents reported saving an average of nearly £300 pounds (£291) through travel related rewards from their credit card.

Three quarters (75%) of 25-34-year-olds have used a price comparison website to help choose a credit card. However, this figure drops to just a quarter (25%) for over 55s, potentially meaning this age group could be missing out on a better deal.

Charlie Evans, Money Expert at Compare the Market, said “Credit card rewards can offer real value, especially when tailored to your spending habits. Whether it’s cashback, retail vouchers, or travel perks, the right rewards can significantly enhance your spending experience. However, it’s important not to overlook the impact of higher interest rates given the impact that they have on the cost of borrowing. We always recommend comparing offers to find a card that not only provides great rewards but suits your financial situation overall. Ahead of the summer travel season, it is worth bearing in mind the potential benefits that cards can provide, especially when it comes to travel-based rewards.”