Whilst the global credit crunch has undoubtedly had an adverse effect on the credit card industry as well as other financial sectors, there are still many different types of credit cards available for consumers to choose from, with those that have good credit enjoying plenty of choice despite the effects of the credit squeeze. Many consumers have opted for a rewards based credit card in the past, as this enables them to earn rewards or cash from the credit card provider simply for using the card in the usual way.

Anyone that tends to repay their credit card balance in full each month, thus avoiding costly interest charges, can benefit from a rewards based credit card, as they can earn the rewards offered without having these benefits offset by high interest charges. However, a recent report has shown that an alarming number of consumers are actually failing to take full advantage of these cards by failing to collect the rewards that they accrue. In fact, recent research suggests that there could be around £4.5 billion worth of rewards going begging after being left unclaimed by cardholders.

According to the research around 57% of cardholders have an average £42 worth of rewards that has been left unclaimed in the form of rewards points, gift vouchers, and other types of reward. Around 20% of cardholders are thought to have around £160 worth of air miles each that have also gone unclaimed. Over 50% of consumers are thought to have failed to collect gift vouchers worth an average £51 each. This shows that whilst consumers can enjoy great benefits from these cards many are failing to cash in.

One official involved in the research said: “It’s fairly typical for a company to offer customers an incentive to join their club. Whether it’s reward points in a supermarket or air miles for choosing a specific airline, loyalty is meant to pay.”

He went on to state: “However our research shows that while these schemes are a clear incentive to buyers, we as customers do not fulfil our end of the bargain and spend our hard earned rewards. Which means providers have won twice by getting your business and then not having to reward your loyalty as agreed. If this shows anything it’s that there are very few reward schemes that genuinely work. Perhaps the best bet is to stick to a cashback credit card, where at least you are automatically rewarded in pounds and pence.”

The research showed that those most likely to be sitting on rewards points are older people aged 55 and over. Also, the areas in which people are most likely to have failed to collect on their cards are London and the South East. Those that want a rewards based card but feel that they cannot keep track of their rewards may find that cards that automatically redeem the rewards, such as cash back cards, may be better suited to them.