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"Consumers have failed to cash in on credit cards"

By admin | May 10th, 2008 | Cash Back & Rewards

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 miles, rewards, and gift vouchers. Many consumers decide to take out a rewards based credit card because of the benefits that are offered, but this research shows that not everyone is bothering to make the most of these cards.

In the past these cards have proven popular amongst consumers that tend to repay their balance in full each month, this incurring no interest charges, as they can then actually earn money or rewards from the credit card provider simply for using the card in the usual way. However, whilst many take out these credit cards because of the incentives offered there are many cardholders that then fail to cash in on the benefits.

The research showed that the average cardholder had around £42 worth of rewards that remained unclaimed, and 20% of cardholders have over £160 worth of unclaimed air miles. One industry official 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 added: “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.”

Tags: credit card rewards, Credit Cards

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