One in three credit card holders reject ‘unsatisfactory’ reward schemes
A third of credit card holders are failing to take advantage of their credit card reward schemes, with many claiming to be unhappy with the schemes.
prepaid cardsThe reward schemes, which see spenders collecting points or obtaining cashback each time they use their card, have been deemed unsatisfactory by many credit card holders, according to a study conducted by Asda Money.
One in three credit card holders complained that they have to overspend on the cards to get a decent return, while one in four (24%) claimed that the long wait for their rewards was the reason for their dissatisfaction. Cashback cards typically do not credit the money earned until the end of the year.
According to the study, one in five credit card holders ignore the schemes completely, with a quarter saying that they are not representative of everyday savings.
Kirsty Ward, Head of Asda Money, said: “Times have changed and shoppers don’t want complicated reward schemes or rewards that don’t translate into real everyday savings.”
According to Moneysupermarket.com, the most profitable scheme comes courtesy of American Express, whose platinum card offers 5% cashback on up to £2,000 of purchases in the first three months, a further 1.25% on everything bought and double cashback of 2.5% for one month every year. Capital One’s ‘Aspire World’ Card and the Creation Mastercard were also highlighted as solid choices.
This follows the news that Aqua has launched an innovative credit-building card which gives a 3% cashback reward on all purchases up to £100 for 12 months.
The card, which is specifically aimed at those with a poor credit history, plans to help those new to credit or people wishing to repair damaged credit ratings and become better borrowers.
Kevin Mountford of Moneysupermarket.com praised Aqua’s popular Reward card: “Provided you don't spend more than you can repay each month this is an excellent way of rebuilding your credit record and getting some valuable cashback at the same time,” he said.
Using a rewards-based credit card during the current economic climate could see cardholders benefit, as rewards including cashback and retail vouchers can be earned each time they are used.