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Reward credit cards on the rise

Reward credit cards on the rise

Category: Credit cards

Updated: 08/03/2012
First Published: 08/03/2012

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 It is now over 6 months old so the content may be out of date.

People are being given more chance than ever to be rewarded when they spend on their credit cards, new research has found.

The number of credit cards giving customers something back has expanded significantly in the last couple of years, figures from Sainsbury's Finance show.

Today, more than four in ten (42.3%) of credit cards offer a reward – a steep increase compared with 27.4% just two years ago.

A mixed bag of rewards are on offer; 22% offer cashback, 68% provide a points or voucher system and the remaining 10% reward spenders with air miles.

However, the findings reveal that the financial value of these rewards can vary dramatically and it is urging would-be card holders to select their credit cards wisely.

Looking at cashback deals for example, on an annual spend of £6,000, the average reward is just 0.77%; only 27.2% of the cash back deals available pay 1% or more.

The figures show that if you're looking for a credit card that offers you something back, spending some time researching the best deals on the market is likely to net a better or larger reward in the long run.

"As the cost of living increases, people are increasingly looking to get more for their money and also be rewarded for being loyal customers," said Stuart McKeggie, head of credit cards at Sainsbury's Finance.

"This is particularly true with credit cards, where people want rewards for using them."

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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 Any products featured may be withdrawn by their provider or changed at any time.

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