Cards increasingly used for everyday purchases

The multitude of offers available for credit cards is boosting their use in everyday purchases, according to Morgan Stanley.

The card company said that cashback cards, zero-per-cent introductory rates and other offers are encouraging people to splash out on credit more often ñ a far cry from the days when plastic was just used for big purchases.

It said that 55 per cent of spending now goes on essential items such as groceries and petrol ñ while the amount spent on everyday items has grown by 11 per cent in the last six months.

Britons are likely to put an average of £363 on house and car items on their credit cards, on top of £315 for groceries.

“Credit cards have changed enormously over the years and so has the way that people use them,” said Patrick Muir of Morgan Stanley.

“Savvy credit card customers are taking advantage of credit card incentives and beginning to use their cards more and more for everyday purchases,” he added.

He added that Britons are more likely to compare credit card deals for the best rate, loyalty schemes and other features such as low balance transfer charges or cashback.

© Adfero Ltd

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