Rise in credit card reward schemes

The number of credit cards that offer reward incentives for signing up has increased by more than 50% in the past two years, research has revealed.

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Research by Sainsburyís Finance has revealed that nearly half of credit cards on the market now offer reward incentives to customers.

It was found that 42.3% of credit cards now offer some kind of reward incentive, compared to just 27.4% two years ago.
With a large number of credit cards available, banks and credit card companies are trying to entice customers with attractive deals.

This is good news for customers, as the rewards offered by credit cards can amount to significant savings in the long run.
The research found that more than half of credit card holders claim to be rewarded for using their card, reflecting the large number of incentives available.

 ìAs the cost of living increases, people are increasingly looking to get more for their money and also be rewarded for being loyal customers,î said Stuart McKeggie, Head of Sainsbury’s Credit Cards.

ìThis is particularly true with credit cards, where people want rewards for using them. However, the financial value of rewards is worthless if it is difficult to redeem them.îA points or voucher system was found to be the most common type of credit card reward system, with 68% of reward cards offering this incentive.

Cashback was another type of common incentive, with 22% of cards offering money back on purchases. The remaining 10% of reward cards offer customers Air miles.

The rise in reward incentives means that more people are hunting out the best deals. Almost a quarter of people are taking out a new credit card in the next year to take advantage of the rewards on offer.

You can compare credit cards with Money Expert.

 

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