Does your credit card benefit you?

Credit card holders are being advised to check the benefits of their current product to see if they are getting maximum value.

According to a new report, less than fifty per cent of credit card holders receive benefits of any kind for using their card.

Potential benefits include accumulating retail points (30 per cent), which can be ‘spent’ in shops, or cash-back cards that refund a portion of the money spent by the consumer (21 per cent).

Another common reward is air miles, which are received by just under ten per cent of cardholders.

Charlotte Hogg, managing director for the Goldfish Credit Card, advises: “If customers hold a card that doesnít reward their spending then they should investigate what other cards might be better suited to their spending patterns.”

Meanwhile, Helen Saxon of the Finance and Leasing Association has said that in some circumstances, a personal loan can have a “positive” impact.

This is especially true when credit card interest rates are compared to most personal loan rates, she added, although she warned borrowers to ensure they could meet repayments before taking out any form of loan.

© Adfero Ltd

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