American Express, Discover and Capital One—some of the largest credit card issuers in the country—spent a combined $12.9 billion on credit card rewards in 2017. This marks a 59% increase over 2011, and it speaks to the increasing rewards war that has been raging among card issuers this decade. However, this is just a small part of the money spent on rewards throughout the industry. Other large issuers, like Citibank and JPMorgan Chase, do not disclose how much they are spending on rewards per year. But in a recent SEC filing, Chase did disclose its total rewards liability—that is, how much its cardmembers have accumulated in rewards and are waiting to redeem. As of 2017, Chase users have a combined worth of $4.9 billion in unredeemed credit card points.
Our analysis also included a look at spending per cardmember. Last year, the banks we examined above spent, on average, $78 per active account. American Express lead the pack, with an annual cardmember spend of $121 per account, while Discover put up just $41 per account. While this shows a positive gain for card users, it is presently unclear whether consumers are being charged more in interest and card fees than they are gaining.
Nationally, 69% of households are estimated to participate in at least one credit card rewards program. This can encompass any credit card account that provides a sign-up bonus, ongoing rewards or promotions to its cardholders. Select parts of the country have far more households participating in credit card rewards than others. We examined data for 318 cities across the U.S. where the population was above 100,000. Californians seemed the most rewards-obsessed. For example, more than 70% of households in Fremont, San Mateo and Santa Clarita enrolled in at least one credit card rewards program.
For the most part, cities in southern states like Texas, Florida, Georgia and Mississippi saw lower participation. However, a few northern cities also saw low participation—namely, Detroit along with a few cities in Ohio. Detroit placed last, with just 43% of households using rewards.
1 | Fremont, CA | 80% | 62,358 | 11,931 |
2 | San Mateo, CA | 78% | 32,535 | 10,512 |
3 | Honolulu, HI | 77% | 105,011 | 5,619 |
4 | Daly City, CA | 76% | 25,118 | 9,787 |
5 | Santa Clarita, CA | 76% | 47,780 | 11,731 |
6 | Highlands Ranch, CO | 76% | 29,426 | 9,994 |
7 | Naperville, IL | 75% | 39,047 | 7,855 |
8 | Huntington Beach, CA | 75% | 58,520 | 10,482 |
9 | Concord, CA | 75% | 35,130 | 9,274 |
10 | Centennial, CO | 74% | 31,068 | 8,082 |
11 | Thousand Oaks, CA | 74% | 35,131 | 8,293 |
12 | Antioch, CA | 74% | 26,065 | 9,502 |
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CA","73%","33,132","10,931"],["18","Arlington, VA","73%","82,268","8,593"],["19","Hayward, CA","72%","36,904","9,400"],["20","Sunnyvale, CA","72%","42,343","10,298"],["21","West Covina, CA","72%","23,800","10,287"],["22","Carlsbad, CA","72%","33,145","9,163"],["23","Pembroke Pines, FL","72%","44,527","10,156"],["24","Elk Grove, CA","72%","37,961","9,921"],["25","Berkeley, CA","72%","35,919","8,805"],["26","Gilbert town, AZ","71%","58,560","8,846"],["27","Roseville, CA","71%","35,882","9,416"],["28","Miramar, FL","71%","30,000","11,558"],["29","Pearland, TX","71%","27,218","8,660"],["30","Santa Clara, CA","71%","33,455","10,292"],["31","Bellevue, WA","71%","39,857","6,731"],["32","Frisco, TX","71%","37,665","13,172"],["33","Fullerton, CA","70%","33,693","10,111"],["34","Columbia, MD","70%","29,770","9,005"],["35","Davie, FL","70%","26,521","10,298"],["36","Alexandria, VA","70%","54,531","7,613"],["37","Scottsdale, AZ","70%","78,887","6,469"],["38","Coral Springs, FL","70%","31,574","10,539"],["39","San Jose, CA","70%","232,893","9,322"],["40","Pasadena, CA","70%","40,732","10,143"],["41","Norwalk, CA","70%","19,367","10,412"],["42","Allen, TX","70%","23,055","12,101"],["43","League City, TX","70%","24,582","7,819"],["44","The Woodlands, TX","69%","29,913","7,199"],["45","Arvada, CO","69%","32,982","7,333"],["46","West Jordan, UT","69%","22,830","8,626"],["47","Richmond, CA","69%","26,717","7,920"],["48","Costa Mesa, CA","69%","29,233","10,439"],["49","Burbank, CA","69%","30,169","10,345"],["50","Surprise, AZ","69%","35,417","6,495"],["51","Oakland, CA","68%","116,776","8,347"],["52","Chandler, AZ","68%","66,552","7,877"],["53","Peoria, AZ","68%","44,408","6,842"],["54","Stamford, CT","68%","33,913","7,853"],["55","Thornton, CO","68%","32,256","8,361"],["56","Joliet, IL","67%","33,022","7,127"],["57","Anaheim, CA","67%","70,557","10,242"],["58","Garden Grove, CA","67%","32,367","9,816"],["59","Downey, CA","67%","23,630","9,775"],["60","Elgin, IL","67%","24,859","6,719"],["61","Westminster, CO","67%","31,826","7,544"],["62","Anchorage, AK","67%","74,518","10,475"],["63","Aurora, IL","67%","43,515","7,230"],["64","Cambridge, MA","67%","32,119","6,153"],["65","Oceanside, CA","67%","42,795","7,882"],["66","Palmdale, CA","67%","31,431","10,012"],["67","Cary town, NC","67%","40,809","8,368"],["68","San Diego, CA","67%","348,321","8,665"],["69","McKinney, TX","67%","38,300","11,570"],["70","San Buenaventura, CA","67%","27,968","7,159"],["71","Clovis, CA","67%","24,411","7,961"],["72","Enterprise, NV","66%","33,044","8,281"],["73","Henderson, NV","66%","74,857","6,721"],["74","Chula Vista, CA","66%","54,946","9,108"],["75","Olathe, KS","66%","32,249","8,094"],["76","Overland Park, KS","66%","51,691","7,062"],["77","Yonkers, NY","66%","50,930","7,546"],["78","Fort Lauderdale, FL","66%","53,501","8,301"],["79","Temecula, CA","65%","22,883","9,552"],["80","Plano, TX","65%","73,295","9,761"],["81","Virginia Beach, VA","65%","114,243","7,444"],["82","Washington, DC","65%","202,938","7,175"],["83","Glendale, CA","65%","48,879","9,159"],["84","Hillsboro, OR","65%","25,260","7,586"],["85","Murrieta, CA","65%","22,602","8,870"],["86","Hollywood, FL","65%","40,743","8,502"],["87","Seattle, WA","65%","207,666","6,153"],["88","Long Beach, CA","65%","110,245","9,320"],["89","Lancaster, CA","65%","33,149","9,417"],["90","Oxnard, CA","65%","34,114","7,701"],["91","Chesapeake, VA","65%","55,846","7,407"],["92","Pomona, CA","65%","26,106","9,030"],["93","Rancho Cucamonga, CA","65%","37,017","8,872"],["94","Fairfield, CA","64%","24,534","9,767"],["95","Renton, WA","64%","26,280","6,083"],["96","Lakewood, CO","64%","44,214","6,647"],["97","Santa Ana, CA","64%","49,681","9,516"],["98","Jersey City, NJ","64%","68,749","8,802"],["99","West Palm Beach, FL","64%","30,399","8,082"],["100","Corona, CA","64%","29,965","9,321"],["101","Bakersfield, CA","64%","75,629","7,899"],["102","Pompano Beach, FL","64%","29,217","7,204"],["103","Santa Rosa, CA","63%","43,109","8,504"],["104","Round Rock, TX","63%","26,713","6,872"],["105","Rochester, MN","63%","29,444","7,310"],["106","West Valley City, UT","63%","25,414","6,968"],["107","Los Angeles, CA","63%","876,282","9,161"],["108","Colorado Springs, CO","63%","118,364","6,615"],["109","Beaverton, OR","63%","26,670","6,707"],["110","Carrollton, TX","63%","30,511","9,272"],["111","Sterling Heights, MI","63%","31,759","5,667"],["112","Richardson, TX","63%","26,737","8,956"],["113","Boise City, ID","62%","58,623","6,234"],["114","New York, NY","62%","2,060,291","7,789"],["115","Aurora, CO","62%","87,352","6,834"],["116","Madison, WI","62%","69,768","5,501"],["117","Mesa, AZ","62%","113,987","5,794"],["118","Sandy Springs, GA","62%","29,728","6,849"],["119","Boulder, CO","62%","28,912","8,983"],["120","Sacramento, CA","62%","114,363","7,461"],["121","Brandon, FL","62%","27,363","8,022"],["122","Portland, OR","62%","169,316","6,616"],["123","Denver, CO","62%","194,106","7,202"],["124","Cape Coral, FL","62%","43,704","5,148"],["125","Midland, TX","62%","31,419","9,592"],["126","Vista, CA","62%","19,442","7,188"],["127","Compton, CA","62%","15,067","8,399"],["128","Billings, MT","62%","29,700","8,344"],["129","Escondido, CA","62%","29,908","7,427"],["130","Miami Gardens, FL","62%","21,397","7,627"],["131","Spring Hill, FL","62%","25,289","6,026"],["132","Boston, MA","61%","172,352","5,436"],["","United States Average","61%","75,678,710","6,750"],["133","Fort Collins, CO","61%","40,837","8,720"],["134","Vancouver, WA","61%","44,392","5,922"],["135","Fontana, CA","61%","31,323","9,188"],["136","Vallejo, CA","61%","26,278","8,332"],["137","Broken Arrow, OK","61%","24,864","10,587"],["138","Cedar Rapids, IA","61%","34,354","6,649"],["139","Greeley, CO","61%","23,398","8,383"],["140","North Las Vegas, NV","61%","45,525","6,808"],["141","Albuquerque, NM","60%","139,812","6,213"],["142","Las Vegas, NV","60%","137,841","6,250"],["143","Des Moines, IA","60%","52,677","4,757"],["144","Minneapolis, MN","60%","107,484","5,861"],["145","Lowell, MA","60%","24,546","4,824"],["146","Kent, WA","60%","22,786","5,438"],["147","Wichita, KS","60%","93,524","5,988"],["148","Visalia, CA","60%","25,958","8,782"],["149","Tacoma, WA","60%","50,253","5,114"],["150","Spring Valley, NV","60%","47,558","6,058"],["151","Chicago, IL","60%","642,976","6,103"],["152","Palm Bay, FL","60%","25,840","5,027"],["153","Saint Petersburg, FL","60%","69,338","6,842"],["154","Omaha, NE","60%","101,606","4,717"],["155","Tempe, AZ","59%","42,946","5,842"],["156","Inglewood, CA","59%","22,650","7,819"],["157","Phoenix, AZ","59%","336,667","6,144"],["158","Gresham, OR","59%","24,960","5,824"],["159","Salt Lake City, UT","59%","48,610","6,544"],["160","Clearwater, FL","59%","30,097","6,491"],["161","St. Paul, MN","59%","70,710","5,324"],["162","El Monte, CA","59%","17,062","7,947"],["163","Raleigh, NC","59%","109,493","6,851"],["164","Glendale, AZ","59%","51,144","5,805"],["165","El Cajon, CA","59%","21,098","6,935"],["166","Stockton, CA","59%","55,778","6,760"],["167","Salem, OR","58%","36,229","7,448"],["168","Everett, WA","58%","26,384","5,086"],["169","Sioux Falls, SD","58%","41,856","6,443"],["170","Grand Prairie, TX","58%","37,944","8,812"],["171","Lewisville, TX","58%","25,483","8,877"],["172","Charlotte, NC","58%","192,959","6,937"],["173","Modesto, CA","58%","42,084","7,822"],["174","Hampton, VA","58%","32,175","5,875"],["175","Austin, TX","58%","221,556","5,819"],["176","Odessa, TX","58%","25,598","8,562"],["177","Riverside, CA","58%","56,013","7,493"],["178","Ann Arbor, MI","58%","28,600","6,506"],["179","Charleston, SC","58%","36,596","5,271"],["180","Santa Maria, CA","58%","16,682","8,573"],["181","Jacksonville, FL","58%","204,072","5,589"],["182","Moreno Valley, CA","58%","31,958","7,669"],["183","Spokane, WA","58%","52,392","7,651"],["184","Elizabeth, NJ","57%","25,025","6,548"],["185","Garland, TX","57%","46,904","7,693"],["186","Fresno, CA","57%","95,816","6,401"],["187","Warren, MI","57%","30,724","4,813"],["188","Tampa, FL","57%","86,897","7,610"],["189","Lincoln, NE","57%","64,476","6,161"],["190","Eugene, OR","57%","40,724","7,344"],["191","Arlington, TX","57%","81,053","8,197"],["192","Rialto, CA","57%","14,596","7,513"],["193","Independence, MO","57%","28,396","5,035"],["194","Columbus, OH","57%","207,383","4,270"],["195","Lakeland, FL","57%","25,002","4,705"],["196","Metairie, LA","57%","34,489","4,779"],["197","East Los Angeles, CA","57%","17,985","7,636"],["198","Newport News, VA","57%","40,777","6,089"],["199","Fort Worth, TX","57%","169,903","8,740"],["200","Reno, NV","56%","55,309","7,880"],["201","Springfield, IL","56%","28,948","5,680"],["202","Ontario, CA","56%","25,981","7,587"],["203","Manchester, NH","56%","26,290","6,368"],["204","Paradise, NV","56%","54,182","5,727"],["205","Mesquite, TX","56%","29,202","7,665"],["206","Port St. Lucie, FL","56%","37,858","6,279"],["207","Las Cruces, NM","56%","23,394","7,176"],["208","Salinas, CA","56%","24,363","8,435"],["209","Atlanta, GA","56%","118,176","6,722"],["210","Kansas City, MO","56%","112,539","5,752"],["211","Davenport, IA","56%","23,741","5,832"],["212","Pittsburgh, PA","56%","77,259","4,676"],["213","Fargo, ND","56%","30,915","6,181"],["214","Hialeah, FL","56%","41,739","6,384"],["215","Provo, UT","56%","19,141","7,610"],["216","San Antonio, TX","55%","297,588","5,140"],["217","Waterbury, CT","55%","23,165","5,527"],["218","Louisville\/Jefferson, KY","55%","142,470","5,413"],["219","Miami, FL","55%","98,955","7,714"],["220","Denton, TX","55%","27,297","7,837"],["221","Durham, NC","55%","59,900","6,093"],["222","Tucson, AZ","55%","116,473","5,293"],["223","Pasadena, TX","55%","29,305","5,330"],["224","Pueblo, CO","55%","24,878","6,502"],["225","Lehigh Acres, FL","55%","19,443","5,145"],["226","Philadelphia, PA","55%","342,776","5,351"],["227","Murfreesboro, TN","55%","27,799","5,571"],["228","Bridgeport, CT","55%","29,147","5,841"],["229","Orlando, FL","55%","66,726","7,220"],["230","Sunrise Manor, NV","55%","35,809","5,353"],["231","Houston, TX","55%","483,523","5,418"],["232","Topeka, KS","55%","29,604","5,449"],["233","Worcester, MA","54%","37,940","5,258"],["234","Victorville, CA","54%","19,722","7,207"],["235","Peoria, IL","54%","25,985","5,741"],["236","Corpus Christi, TX","54%","67,425","7,348"],["237","Nashville-Davidson, TN","54%","149,622","5,365"],["238","Fort Wayne, IN","54%","56,963","5,522"],["239","Amarillo, TX","54%","42,007","7,269"],["240","El Paso, TX","54%","124,680","4,935"],["241","Norfolk, VA","54%","47,759","6,063"],["242","Richmond, VA","54%","51,628","6,021"],["243","High Point, NC","54%","23,615","5,678"],["244","Norman, OK","54%","26,403","9,216"],["245","Paterson, NJ","54%","24,352","6,244"],["246","Huntsville, AL","54%","44,732","6,583"],["247","Baltimore, MD","54%","134,921","6,296"],["248","McAllen, TX","54%","24,656","5,226"],["249","Greensboro, NC","54%","65,081","5,495"],["250","Irving, TX","54%","48,880","8,198"],["251","Grand Rapids, MI","54%","41,630","4,282"],["252","San Angelo, TX","53%","21,188","6,783"],["253","Oklahoma City, OK","53%","137,722","9,221"],["254","Newark, NJ","53%","52,592","5,944"],["255","Indianapolis, IN","53%","183,290","5,276"],["256","Buffalo, NY","53%","59,434","3,969"],["257","Green Bay, WI","53%","22,967","5,596"],["258","Lexington-Fayette, KY","53%","70,037","7,052"],["259","Lafayette, LA","53%","28,557","7,055"],["260","Abilene, TX","53%","24,341","6,426"],["261","Allentown, PA","53%","22,795","4,202"],["262","Little Rock, AR","52%","44,543","4,792"],["263","Columbia, MO","52%","24,915","5,863"],["264","Milwaukee, WI","52%","121,792","4,395"],["265","Syracuse, NY","52%","30,111","3,934"],["266","New Haven, CT","52%","25,668","5,587"],["267","Dallas, TX","52%","262,900","7,627"],["268","Wichita Falls, TX","52%","20,204","6,401"],["269","Lubbock, TX","52%","50,508","6,821"],["270","Rochester, NY","52%","45,386","3,955"],["271","Kansas City, KS","52%","28,878","4,925"],["272","Columbia, SC","51%","25,266","4,485"],["273","Wilmington, NC","51%","27,225","6,451"],["274","Clarksville, TN","51%","29,439","7,082"],["275","Rockford, IL","51%","29,690","5,113"],["276","Chattanooga, TN","51%","39,223","4,539"],["277","Killeen, TX","51%","27,757","7,421"],["278","Montgomery, AL","51%","40,055","6,372"],["279","South Bend, IN","51%","20,275","5,067"],["280","Tyler, TX","51%","20,640","6,275"],["281","Evansville, IN","50%","25,638","4,835"],["282","Springfield, MA","50%","28,850","4,429"],["283","Akron, OH","50%","41,716","3,622"],["284","Toledo, OH","50%","58,520","3,635"],["285","North Charleston, SC","50%","21,684","4,516"],["286","Tulsa, OK","50%","85,642","8,147"],["287","Providence, RI","50%","31,396","4,967"],["288","St. Louis, MO","50%","70,918","5,003"],["289","Roanoke, VA","50%","21,859","5,917"],["290","Columbus, GA","50%","39,058","6,479"],["291","Baton Rouge, LA","50%","45,973","4,560"],["292","Fayetteville, NC","49%","40,612","6,218"],["293","San Bernardino, CA","49%","30,044","6,162"],["294","Winston-Salem, NC","49%","48,545","6,155"],["295","Mobile, AL","49%","39,143","6,036"],["296","Springfield, MO","49%","36,554","4,709"],["297","Lansing, MI","49%","24,519","4,893"],["298","Augusta-Richmond, GA","49%","37,496","4,076"],["299","Beaumont, TX","49%","22,747","6,262"],["300","Tallahassee, FL","49%","38,780","6,217"],["301","Shreveport, LA","48%","38,226","6,233"],["302","Knoxville, TN","48%","39,515","4,533"],["303","New Orleans, LA","48%","81,080","4,672"],["304","College Station, TX","48%","18,857","6,956"],["305","Memphis, TN","48%","119,543","4,530"],["306","Laredo, TX","47%","33,797","7,283"],["307","Savannah, GA","47%","27,577","5,953"],["308","Cincinnati, OH","47%","64,352","5,052"],["309","Hartford, 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We looked at several metrics to determine whether any factors tied these cities together and whether anything could explain the rewards participation, or lack thereof. The biggest correlation was present between rewards participation and median household income. The two had a strong, positive correlation of 0.85. The more affluent a city was, the more likely it is to have a high number of households with rewards cards. Fremont, the city where most households have a at least one rewards card, had the fourth-highest median income on our list.
It should also be noted that high credit card rewards participation correlates to a high level of debt. There was a 0.72 correlation between average credit card debt in a city and its credit card rewards participation rate. However, it should be noted that higher card debt can be a result of many factors, and it isn't necessarily caused by rewards. For example, more affluent cities may spend more in general, which would inflate the total credit card balances for that region.
These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
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How We Calculate Rewards: ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. These estimates here are ValuePenguin's alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.
Example of how we calculate the rewards rates: When redeemed for travel through Ultimate Rewards, Chase Sapphire Preferred points are worth $0.0125 each. The card awards 2 points on travel and dining and 1 point on everything else. Therefore, we say the card has a 2.5% rewards rate on dining and travel (2 x $0.0125) and a 1.25% rewards rate on everything else (1 x $0.0125).