Related Credit Card Article

"Are you one of the consumers that has failed to claim credit card rewards?"

By admin | April 28th, 2008 | Featured

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.

Tags: credit card rewards, Credit Cards

Related Articles:

• Consumers have failed to cash in on credit cards

  According to a recent report many consumers with rewards based credit cards have failed to cash in on rewards and benefits, with an estimated £4.25 billion worth of rewards having gone unclaimed. The research was conducted by MoneyExpert.com, and according to the figures consumers are missing out on billions of pounds worth of points, air...

• Credit card reward schemes need to be more transparent

  According to one industry official credit card rewards schemes need to be more transparent in order to better benefit consumers. This comes after a survey revealed that many consumers with rewards based credit cards were failing to collect their rewards for one reason or another. Many people have signed up to rewards based credit cards...

• Little point in a rewards based credit card for those that fail to collect

  For many consumers a rewards based credit card is the ideal way to make something back from credit card companies rather than having to pay them for the privilege of using a credit card. With these cards consumers are able to earn one of a range of rewards based on their spending. Rewards include travel...

• What’s the deal with rewards based credit cards?

  The huge plethora of credit cards on the market these days comes as great news for consumers, as it means that they have plenty of choice when it comes to finding the perfect credit card for their needs, as well as a wide range of providers. In the current financial climate it makes sense to ensure...

• Many will be looking for credit cards with rewards

  There are many different types of credit cards on the market these days and in the current financial climate where finances are tight there are many people that are keen to get their hands on these cards. According to a recent report around 8.65 million people are planning to take out a credit card over...

Other Recent Articles

Use of credit cards declines whilst payday loans increase

It seems that many consumers may have switching from spending on credit card that can sometimes come with high rates...

By Reno | February 10, 2012 | Read More

Useful Tips for Credit Card Holders

Modern technology offers comfort and convenience that is often helpful for people in a fast paced everyday living. With just...

By admin | February 7, 2012 | Read More

Credit card decision by Lloyds could have serious effect on charities

For many years now, a range of leading and well known charities have been able to boost the levels of...

By Reno | January 28, 2012 | Read More

Many have to rely on credit cards to make ends meet

There was a time when people had credit cards to enable them to pay for occasional larger, more expensive items...

By Reno | January 26, 2012 | Read More

Brits increasingly dissatisfied with credit card providers

According to recent reports, Brits are becoming increasingly dissatisfied with their credit card providers, particularly in the case of the...

By Reno | January 20, 2012 | Read More