UK failing to cash in on credit cards

The UK is failing to get the most out of its credit cards by not redeeming all the loyalty points card holders are due, claims research by Morgan Stanley.

Just 32 per cent of cardholders who are due a reward actually claimed them, said the research, allowing purchase points, Airmiles and cash back to go unclaimed.

The report also revealed massive differences with the value awarded to loyalty schemes.

Airmiles were the most valuable bonus, with the average price on redemption standing at £157.

They were also the least claimed against, however with just nine per cent picking them up within the last three months.

Goldfish card points were the most popular award scheme, with 46 per cent claiming on them over the last three months, but also among the cheapest with an average value of £64.

“Smart spenders should consider how useful the rewards actually are and how easy they are to redeem,” said Patrick Muir of Morgan Stanley.

“Credit card reward schemes can be a great way for cardholders to be rewarded for everyday spending, but there is no point in having one if customers do not redeem their points.”

If credit card users have a loyalty offer credit card that they find they rarely claim against they will probably find themselves better of switching to the best rate card available.

© Adfero Ltd

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