NEW YORK, Aug. 12, 2020 /PRNewswire/ -- Consumers are
generally traveling less frequently thanks to the pandemic, which
is affecting how people use (or don't use) their travel rewards
credit cards. With 46% of consumers carrying a travel rewards
credit card, many are thinking about what will happen to their
points and miles since there are no travel plans for the
foreseeable future.
Based on some of the results in ValuePenguin's recent survey of
credit card users, it appears that people are rethinking their
credit card habits.
Key findings:
- A rush to close cards: More than 4 in 10 millennial
travel rewards cardholders say they've closed a card since the
pandemic began, while another 34% of millennials have considered
doing the same. When it comes to travel rewards cards, 30% of
respondents overall have closed one.
- Cashing out while they can: More than half of those
who were laid off or furloughed (and 4 in 10 travel rewards credit
cardholders overall) — have cashed out some of their points or
miles due to the pandemic's impact on their ability to travel.
Another 23% say they have researched options to cash out, but
haven't done so yet.
- Expiration worries abound: Nearly 6 in 10 are
worried about their perks or points expiring, while 45% fear
they'll lose their rewards if the airline, hotel or provider goes
bankrupt. Millennials are the most worried cohort, with 72% and
54%, respectively, expressing these concerns.
- The battle for points and miles refunds is on: As
unfair as it sounds, 28% of Americans who booked a trip using
travel rewards and had to cancel due to the coronavirus were not
able to get their points or miles refunded back to their
account.
"It doesn't surprise me at all that many people are closing
travel cards right now," said Matt
Schulz, chief credit analyst at LendingTree, ValuePenguin's
parent company. "Many Americans are simply trying to keep food on
the table, and hoarding travel miles and points just doesn't make
any sense for a lot of people at this time."
Full
report: https://www.valuepenguin.com/travel/cardholders-close-cards-coronavirus
ValuePenguin commissioned Qualtrics to conduct an online survey
of 1,243 Americans, with the sample base proportioned to represent
the overall population. The survey was fielded July 10-13, 2020.
About ValuePenguin.com: ValuePenguin.com, part of
LendingTree (NASDAQ: TREE), is a personal finance website that
conducts in-depth research and provides objective analysis to help
guide consumers to the best financial decisions. ValuePenguin
focuses on value, assessing whether the return of a particular
decision is worth the cost or risk of that option, and how this
stacks up with the other possible choices they may have. For more
information, please visit www.valuepenguin.com, like our
Facebook page or follow us on Twitter @ValuePenguin.
Media Contact:
Morgan Lanier (Mrs.)
(704) 943-8604
morgan@LendingTreeNews.com
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SOURCE ValuePenguin.com