A recent survey by TD Bank found that a majority of respondents had multiple credit cards, with rewards programs being the most enticing feature when choosing a new card. The bank’s 2024 Consumer Spending Index found that not only did most respondents have multiple credit cards, nearly half (47%) said they had three or more cards.
Rewards cards dominate the credit card space with more than eight in 10 consumers (83%) having one, according to TD Bank. When it comes to choosing a new card, consumers are most enticed by the rewards program structure (34%), attractive introductory offers (33%) and the reputation of the card issuer or financial institution (24%).
Debit cards also remain popular, with consumers closely split between credit and debit as their primary method for making day-to-day purchases, with 43% using a credit card and 39% using a debit or check card tied to a checking account. The preference for credit cards was driven by several factors, including convenience (64%), the opportunity to maximize rewards (60%) and enhanced security on purchases (46%). Only 10% of respondents report using cash as their primary spending method.
Respondents also expressed hesitancy to embrace buy now pay later options, with only 28% having used BNPL installment options. The use of BNPL was popular among millennials, with 45% having used BNPL compared to just 16% of baby boomers. Those who do use BNPL often cite the ability to spread out payments for items that wouldn’t otherwise fit their budget (47%) and the appeal of low or no interest rates (23%).
