Cardholders favour rewards offers - Credit cards - News - Moneyfacts


Cardholders favour rewards offers

Cardholders favour rewards offers

Category: Credit cards

Updated: 30/05/2013
First Published: 30/05/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Almost a quarter (21%) of consumers would switch to another credit card if it offered better rewards on their spending, according to a study by M&S Bank.

In such tough economic times, the chance to receive rewards or cashback for spending appears to feature highly on consumers' tick lists when choosing the best credit card, with around 36% stating that they had applied for a new card in the past year based on its reward offers.

A further 45% of 35-54 year olds had switched or applied for a card based on the rewards offered.

Cashback cards, which offer cash rewards in return for spending, have made something of a comeback to the cards market over the past couple of years. Moneyfacts research found a total of fifteen cards currently offer cashback rewards, compared with ten in May 2011.

M&S Bank found 66% regularly use reward cards to achieve the most out of their spending, with more than two thirds regularly redeeming points accrued on their cards.

Chief executive officer of M&S Bank, Colin Kersley, claimed many of us now live in a "rewards culture" and have grown to expect benefits in return for loyalty.

"With the majority of UK purchases being made by card, people can earn a significant amount in reward points so it's really worth spending a little time to research the card that suits your needs," he said.

"Reward points are a great way to save for a special treat, event, or even just to help reduce everyday costs."

What next?

Compare the best cashback credit cards
Compare credit cards with rewards
Compare 0% purchase credit cards

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

It’s looking to be a credit Christmas

We are now less than 70 days away from Christmas, and with 70% of people admitting they haven’t started saving yet, millions will be needing to play catch-up - and plenty planning to turn to credit for some Christmas spending relief.

Can no credit score be as damaging as a bad one?

Debt is becoming an increasing problem, which is why those who have no credit commitments often feel pretty smug about it. However, while not relying on credit is admirable, having no credit score can actually be just as damaging as having a bad one.

Know your credit score – key to better borrowing

We all know how important it is to be credit savvy. It’s the only way to make credit work, which is why it’s so concerning that so few people know their credit score – and some don’t even know how much they’re borrowing.