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 rewards, discounts, points that can be redeemed against goods, cash back, air miles, gift vouchers, and more. For every pound spent on the card the consumers receive a certain amount of reward points, and these all add up over time.

However, a recent report showed that whilst these cards were popular amongst many credit card consumers there were many cardholders that were not cashing in on the rewards that they had accrued, which was defeating the object of having a rewards credit card in the first place. Recent data showed that over £4 billion worth of credit card rewards had been left unclaimed by some 83% of consumers. Rewards such as loyalty points, gift vouchers, air miles, and more has been left unclaimed.

The data suggested that over 50% of cardholders had built of an average £42 worth of rewards points on their credit cards, and about 20% of cardholders had around or over £160 worth of air miles on their cards.

One official recently 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. 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.”

Another official recently said: ‘It’s incredible that, as a nation, we are losing out on rewards and bonuses that we have earned through our loyalty, especially when it is so simple to cash in. Loyalty and reward schemes are a fantastic way to earn bonuses - but only if users bother to recoup them.’

He continued: “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.”

Officials have also expressed the importance of paying the card off in full each month to ensure that interest charges do not counteract any reward that is earned from the card, with one official stating: ‘The APRs on these cards can be quite high so the benefits of the perk can soon be eroded by the interest payments. If you get one of these cards, make sure you set up a direct debit to pay it off each month.’

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