Capital One is on a mission to Change Banking for Good, and one way this is realized is through credit card rewards. These rewards, whether in the form of cash back, travel points, or other incentives, provide significant value to both consumers and small businesses. For budget-conscious individuals, credit card rewards can make traveling more affordable or help purchase necessities.

Many young middle-class Americans are leveraging credit card rewards to stretch their dollars. About 77% of respondents to a recent Wakefield Research survey said they redeem their rewards to cover essential purchases such as groceries and bills. This strategy helps families offset the cost of necessities without sacrificing long-term financial plans. A popular approach involves cardholders picking up larger restaurant tabs or entertainment tickets and having their friends pay them back, allowing them to earn more rewards.

Parents aged 20-30 years old prioritize cash back to plan for summer activities. The study shows that 93% of cardholders in this demographic have had to cut back on summer plans due to financial constraints and are turning to credit card rewards to bridge this gap.

Travel points are another favorite; they help reduce flight costs, provide complimentary meals at airport lounges, or offer upgraded hotel rooms. Rewards miles enable cardholders to get more value out of their trips.

With cardholders going out of their way to maximize rewards, it’s no surprise that the majority of respondents (98%) consider rewards offered when choosing which card to sign up for.

Like consumers, many small business owners leverage credit card rewards to support their growth. Businesses operating for less than six months are more likely to use credit card rewards for day-to-day expenses. This may be due to an early emphasis on growth for new businesses or reflect an increase in daily expenses as companies look beyond their initial launch.

For many new businesses (6-12 months old), rewards are not just a perk but necessary for growth. Nearly half (48%) of these owners consider rewards crucial for growth.