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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 It is now over 6 months old so the content may be out of date.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."

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