Credit Card Users Split by Income on Rewards and Credit

Many people in the U.S. may think they have a solid grasp on the benefits that using a credit card can bring. After all, numerous Americans are bombarded with offers to apply for a card once they reach the age of 18, and those offers often keep arriving in a consumer’s mailbox throughout their adult years. 

But a new report from Credit One Bank reveals that people can have markedly different motivations for using credit cards. The bank conducted a survey of 1,000 adult consumers in the U.S. who own one or more personal credit cards, and it found that a person’s income can play a big part in why they use their card.

For respondents earning $50,000 or less per year, 37% said that the number one reason they have a credit card is to build their credit history. People earning lower salaries may be relatively young adults who are just getting started with their careers.

By being responsible with a credit card, this group can put themselves in a better position to achieve their financial goals. Borrowers with stronger credit profiles can often qualify for loans that come with better interest rates. 

“On a 30-year mortgage, even a difference of one percentage point in your interest rate can mean tens of thousands of dollars in additional interest costs,” major credit bureau Experian wrote in a recent report. “The same principle applies to auto loans, personal loans, and credit cards. Better credit usually means less money paid in interest.”

A slightly higher rate on a 30-year mortgage can increase interest costs substantially over the life of the loan.

On the other hand, 38% of respondents who earn at least $150,000 annually told Credit One Bank that the main reason they turn to credit cards to complete transactions is to access the rewards that their card program offers.

Amid legal and regulatory fights that could affect how some rewards cards are accepted, consumers continue to favor the benefits they bring.

The American Bankers Association partnered with Morning Consult to conduct a poll on card rewards in October 2025 and reported that 82% of respondents to its survey own at least one credit card that comes with rewards. And 90% of respondents with rewards cards said they value the perks programs that come with them. 

As for what type of rewards cardholders most value, cash is king. More than two-thirds of respondents to Credit One’s survey said that — when it comes to their main credit card — cash back is a very appealing benefit. The bank recently rolled out a new ad campaign that highlights a cash back credit card.

Choosing not to pay one’s credit card balance in full each month can be a costly decision. And the uneasiness that can accompany carrying a balance from one month to the next may factor into how much people pay down their card balance in a given month.

The report from Credit One Bank indicates that more than three-quarters of respondents to its survey said that carrying a balance on their card from month to month is a source of anxiety for them. But different age groups may be more willing to take on that stress than others.

Millennials, or those 29 to 44 years old, are at a phase of life that may cause them to rely on their credit cards more than other generations. Of millennials who participated in the survey, 60% said they carried a balance at least once at some point within the past year. 

Respondents in Generation X, who fall in the 44 to 60 age range, came in just behind Millennials at 59%. 

0%77% Share of survey respondents who said that carrying a balance on their card from one month to the next causes anxiety

Meanwhile, Baby Boomers, or those 61 to 78 years old, are more likely to be at a point in their life when they need less credit than younger generations. Only 37% of respondents who identify as Baby Boomers said they carried a card balance from one month to the next at least once over the past 12 months.

Many members of Gen Z, who span from ages 18 to 28, are relatively new users of credit cards. Though young, this generation seems to understand that responsible use of a credit card is important to their overall financial health.

Of survey respondents who are members of Gen Z, 65% said that they think people shouldn’t receive their initial credit card until they’ve completed some form of financial literacy program.

“Gen Z has watched older siblings, friends, and parents struggle with debt,” the authors of the Credit One report wrote. “They see the system clearly enough to know they may need better tools before jumping in.”

Artificial intelligence can help fill in some of those knowledge gaps prospective cardholders have about using credit. Nearly one-third of Gen Z respondents said they’ve used AI solutions such as ChatGPT or Gemini to boost their credit score.