Credit Card Users 'missing Out On Reward Bonuses'
Many consumers are missing a trick when it comes to cashing in on credit card loyalty schemes.
A number of credit cards offer loyalty schemes that reward customers with benefits in a bid to win their custom, but research suggests that consumers are failing to take advantage.
With the average household now becoming more aware of their finances and savvy with their spending, the Barclaycard Freedom rewards credit card couldn't have come at a better time launched on March 17 with more than 30,000 retail outlets invited to join, including Shell, Pizza Express, Flight Centre, LA Fitness and Just Tyres.
The scheme allows Barclaycard credit card customers to benefit from double reward points worth 2% of spending on card purchases made up until 17 May.
Card holders can view their reward balance when making a payment before entering their PIN.
One of the main attractions of the Barclaycard Freedom scheme is ease of use, as it gives consumers the opportunity to instantly benefit from a reward, whereas most rival cards tend to provide vouchers or go through complex procedures in order to access rewards.
While major supermarkets and most service stations have yet to join Barclaycard Freedom, loyalty schemes are likely to become a bigger selling point for future credit cards.
Many well known brands have launched their own credit cards offering discounts off their products and services in an effort to broaden their markets and for cross-selling purposes. For example, the Tesco credit card offers its customers increased Clubcard points, while the Sony credit card offers a similar scheme providing users with discounts from Sony branded products.
The BT credit card allows its telecoms customers to save money on their monthly bills when using the card for everyday purchases.
Sam Gooch, at Which4u.co.uk, said: Reward schemes are coming back into fashion but always be sure to check out the terms & conditions of each scheme and find the best rewards credit card to suit your spending habits.
The Tesco Clubcard, for example, would be a great choice for somebody that uses the Tesco stores to buy their groceries, and the fuelling stations to run their car.
Users can quadruple the value of Tesco spending vouchers under Tesco Rewards at the wide range of partner companies including Virgin Holidays, Cineworld cinemas, Hilton Hotels, and restaurant groups Pizza Express and Prezzo.
However, experts suggest that cardholders should put more focus on paying off outstanding balances each month before attempting to boost the amount of points they collect
Failing to do so is likely to result in interest charges outweighing any benefits earned from reward schemes.
Sam Gooch said: Times are changing, and more consumers are steering clear of credit cards and turning to debit cards, which means credit card providers are being forced into making their cards look more attractive by offering better rewards.
New research from Airmiles - the longest-running rewards scheme operating for more than 20 years, has found that 70% of Britons admitted to missing opportunities that could have boosted their rewards balance.
More than half of the 30m credit card holders in the UK own cards that offer no reward schemes.
by: Sam Gooch
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