Using credit cards stimulates the brain’s reward system and an urge for further spending, according to a recent study from MIT that examined the neuroscience of buying things.
Credit card shopping tells us to “step on the gas” and leads to more “purchase cravings” in the future, Drazen Prelec, study author and professor at the MIT Sloan School of Management, said in a release.
https://www.cnbc.com/2021/03/13/credit-cards-activate-brain-reward-network-create-cravings.html
Interesting story. I think the level of it certainly varies from non-existent to extreme. There are those who always treat credit cards as if they were debit cards and pay them in full each month and those who see any unused amount of credit as there to be used today. Most of us I want to think fall somewhere in the middle, and we know from studies on the average amount of carried credit card balances that the average consumer leans a bit more toward the latter.
All of my cards for daily use and shopping are paid in full each month, so I do think I am at least somewhat conscientious about what I am spending but there is no doubt there's a feeling of satisfaction every time I book "free" travel.
Chasing rewards certainly influences how I pay for purchases, but I am also well aware that it also strongly influences where and how I buy at times, particularly for online purchases. Using shoes as an example, if I know I can get the same pair for $75 locally, I may still elect to buy them for $100 at another retailer if there is a 10% Rakuten coupon, 10%/x Rakuten earnings, and 3%/x earnings on my Rakuten card. Running those numbers, I paid $90 for the shoes and earned at least $23.40 in Amex Membership Rewards, making my net cost $66.60 at most. So I ultimately still saved at least $8.40 and a trip to the store so that's worth it to me, and I can justify it as paying a small premium ahead of time for purchasing even more in future travel at a hefty discount.
