The wealthiest people in America are some of the most prolific plastic-swiping consumers on the planet, but what type of credit cards do they actually spring for? The statistics point to one type of perk above all others: cash-back cards.
Some 60% of Americans with investable assets over $100,000 prefer cash-back credit cards above all others, leaving frequent flier miles, hotel benefits and other perks in the dust, according to a recent CreditCards.com poll.
Basically, America’s richest people get paid even when they spend money.
Frequent Flier Miles: A Distant Second
It’s not shocking that really rich people like cash. What’s a little surprising is their Scrooge McDuck-like passion for it. The survey results show some affinity for frequent flier miles, but if you’re not giving them money or comping their flights, the wealthy aren’t interested in your credit cards.
Here’s a breakdown of the favorite credit card rewards for individuals with six figures or more of investable assets:
- Cash back: 60%
- Frequent flier miles: 22%
- Free hotel stays: 7%
- Concierge services: <1%
- Airport lounge services <1%
- Special access to experiences: <1%
Scrooge McDuck, the wealthiest fictional character in the world (as of 2013), poses humbly for a portrait.
Other findings in the poll highlight several other revealing trends in credit card preferences:
- The wealthier you get, the more likely you are to favor frequent flier miles. Those with $100,000 or more in household incomes were two times more likely to prefer frequent flier miles than those with $75,000 or less. Apparently, when you can’t afford to travel as much, travel cards don’t really suit you.
- More than two-thirds of women favored cash back, while just 56% of men favored cash back cards.
- Young people were less likely to prefer cash-back cards and more likely to pay through their mobile phones.
Interesting takeaways, but the main point remains clear: “Cash was the overwhelming favorite in all income and asset categories.”
That said, wealthy Americans are naturally the most coveted customer base because of their low credit risk and high levels of spending. In an effort to court the rich, financial institutions, now well aware of these consumer tastes, are adjusting their offerings accordingly:
“Fidelity, for instance, says it considers about half of the customers of its 2 percent cash-back Fidelity Investment Rewards American Express card to be ‘highly affluent.’ The average cardholder earned an average of nearly $1,500 cash back in 2014, which equates to an average spending on the card of $75,000 per year.”
Until further notice, cash is still king.
As of this writing John Divine held no positions in any of the stocks mentioned. You can follow him on Twitter at @divinebizkid.
