Credit Card Usage in October

Have you ever wondered which credit card or bank is most popular among customers? Are you curious about how other credit card customers stack up against you? As we look back on credit card usage in October we’ll reveal these and other interesting trends as we look at the trends from the last month.

it-card-art

Discover It Makes Waves
The #1 card in October was the Chase Freedom – the same position it held in September. The big change happened in the #2 spot with the Discover It card rocketing in popularity. It makes sense that these two cards are so dominant among our users: both are great cards to carry. They also compliment each other well – while both cards have 5% categories that change each quarter, those categories rarely overlap. If you have room in your wallet to carry a few cards, you’d be well served to have both the Chase Freedom and the Discover It.

American_Express_logo

American Express Makes a Strong Showing
Chase was also the #1 card issuer in October with it’s position driven by the popularity of the Freedom card but also a myriad of compelling airline and hotel reward cards. It’s not surprising that Chase would be in the top spot, so we were more interested in how other issuers stacked up.

American Express came in at the second spot this month with their performance driven by the extremely popular TrueEarnings Costco card and their Blue line of cards. We think these cards are a great complement to your wallet if you already have a rotating category card and now we know Reward Summit customers agree!

Rounding out the rest of the top 5 issuers this month were:

#3: Discover, driven mostly by the popularity of their now retired More card and the new It card
#4: Citi, who offers a wide variety of reward cards
#5: Bank of America, driven mostly by their heavily marketed BankAmeriCard Cash Rewards card offering 1% on everything, 2% on groceries, and 3% on gas

The “Power Customer” Trend
The average U.S. credit card customer carries 3-4 credit cards and many of our customers fit in to that demographic. What is more interesting to us is the continuing trend of the “Power Customer” who carries many cards and works to optimize their transactions. In October, 28% of new Reward Summit customers carried five or more cards. The Reward Summit app works well for anyone interested in earning more rewards since it can be difficult to keep track of just one or two reward programs. For the power customer who carries five (or in some cases, as many as 10 or 15!) cards, it’s virtually impossible to know which card is best without some assistance. We’re thrilled to see people using Reward Summit to maximize their rewards.

Looking Ahead
November and December are typically big months for spending: holiday travel offers lots of opportunities for earning airline and hotel points, families get together for big dinners, and gift giving goes into high gear. With that in mind, here are a couple trends we anticipate for November:

  • We expect to see continued popularity of the Discover It card with its 5% cash back for online purchases this quarter. If you’re shopping online for gifts, this is the absolute best way to save money this quarter. You can learn more here.
  • The Huntington Voice card offers great flexibility in configuring reward points. We reviewed the card before and believe consumers will find it extremely compelling. While it doesn’t have the same marketing power behind it as the Chase Freedom, the American Express Blue family of cards, of the Bank of America BankAmeriCard Cash Rewards card, it is one of the most impressive new cards.
  • Chase Freedom will continue to dominate this quarter. Offering 5% cash back at Amazon.com and select department stores, it’s hard to go wrong with this card.

 

By : Chris Hart /November 04, 2013 /Uncategorized /Comments Off

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