Americans Increasingly Use Credit Card Reward Points for Everyday Expenses

With the strain of rising inflation on American budgets, a growing number of people are using their credit card reward points to cover daily essentials, ranging from fuel to pet supplies.

Redeeming Reward Points for Everyday Expenses

In a recent survey by USAA Federal Savings Bank involving over 1,000 participants, over 35% confirmed they redeem reward points for everyday expenses. Statement credits are also popular, with a whopping 79% of participants admitting to having used their points in this manner at least once in the past six months.

Credit Karma states that as recently as 2023, most Americans were more likely to redeem credit card rewards for travel. Now, however, they’re prioritizing groceries and gas instead.

Rising Popularity of Pay-with-Points Options

Many credit card issuers and retailers, including Amazon, now allow customers to redeem rewards at the point of sale. This makes it easier for cardholders to use their points for standard purchases, contributing to the increasing prevalence of immediate redemptions.

According to the USAA survey, only about 26% of consumers stated they redeem their rewards for nonessential spending. This suggests that more people are using ‘pay with points’ to manage everyday expenses rather than for discretionary purchases.