Fewer With Rewards Credit Cards Planning Black Friday Shopping
Fewer than half of Americans who have rewards credit cards are planning to shop either online or in-store on Black Friday this year. That's one of the conclusions of the latest edition of Capital One's quarterly Rewards Barometer tracking study, which seeks to measure consumer attitudes among those with rewards plastic from all credit card companies.
Rewards credit cards and seasonal spending
Other headline findings from the report, published Nov. 14, include:
- Most (58 percent) of holders of rewards credit cards intend to maintain their 2012 holiday spending at 2011 levels -- although, as the saying goes, the road to hell is paved with good intentions.
- A significant amount -- given the slow economic recovery -- 14 percent say they plan to spend more during this season of good cheer than last.
- Just 18 percent report they are going to redeem rewards points for gifts during the period.
That last one's a bit of a shocker. Many might think the holiday shopping season would be prime time for redeeming points and cash back. So how come so few are planning to do so this year?
Redeeming rewards all year round
Capital One's press release suggests two possible reasons:
- Affluent consumers are nowadays tempted by sales and bargains throughout the year, so shopping patterns are changing. That means less emphasis on the traditional buying season.
- Less wealthy Americans have come to rely on their rewards credit cards' points and cash-back credits to subsidize their lifestyles. Twenty-three percent of women responding to the survey said they use their rewards to offset spending on essentials such as groceries and gas.
Black Friday -- and staying in the blackNone of this is likely to mean that shopping malls are going to be deserted on Black Friday. On the contrary, your bruised ribs and trodden toes may well be indistinguishably less sore than last year. But any reduction in the crowds may not be a bad thing for two reasons:
- Last month, The Wall Street Journal reported a Decide Inc. study that found that Black Friday is, for many types of item, far from the cheapest shopping day of the year. It's good for some, including high-end jewelery bargains, but many goods may get cheaper closer to Christmas.
- On Nov. 19, TransUnion, one of the big-three credit bureaus, revealed that both problem credit card debt (the rate of accounts 90 days or more past due) and card balances inched up during the third quarter of 2012.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV