Income Drives a Growing Split in Credit Card Rewards and Credit Use

Many people in the U.S. may think they have a solid grasp on the benefits of using a credit card. After all, Americans are bombarded with credit card offers once they reach the age of 18, and those offers keep coming 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 U.S. consumers 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.

Thirty-seven percent of respondents earning $50,000 or less per year said the No. 1 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.

This group can put themselves in a better position to achieve their financial goals by being responsible with a credit card. Borrowers with stronger credit profiles can often qualify for loans with lower 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 use credit cards is to access the rewards 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 survey respondents 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 survey respondents 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.

Millennials, or those 29 to 44 years old, rely on their credit cards more than other generations. Among millennials who participated in the survey, 60% said they carried a balance at least once in the past year. 

Generation X respondents, or those ages 44 to 60, 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, are more likely to need less credit than younger generations. Only 37% of baby boomer respondents said they carried a card balance from one month to the next at least once over the past 12 months.

Gen Z consumers are relatively new users of credit cards. Though young (18-28), this generation seems to understand that responsible use of a credit card is important to their overall financial health.

Sixty-five percent of Gen Z respondents said 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.