14 March 2005
A recent study has revealed that four of the top 15 credit card providers in the UK are no longer offering added benefits to customers with the remaining 11 offering an uninspiring range of 'low-value' perks.
This fact, according to the impartial financial comparison website uSwitch.com, suggests that credit card benefits once successfully used to entice people into applying for their cards are becoming ever more obsolete.
Gone are the attractive credit card benefits such as car breakdown cover or annual travel insurance and in are the comparatively meaningless and superfluous discounted holiday offers and travel accident insurance, not to be confused with travel insurance.
"Our research shows that many of the cards provide travel accident cover if holidays are paid for with the credit card," notes Nick White, head of personal finance at uSwitch.com.
"Consumers should be aware that this only pays out if you are seriously injured or killed while travelling and won't pay hospital bills for instance, so is not a substitute for travel insurance and should not be confused as such."
Mr White added: "Only a limited number have a tangible value - in terms of discounts, if you go on holiday frequently or buy CDs, these might be also worthwhile.
"One thing to be aware of, however, is that these discounts are usually only available at selected places, and if you had the inclination to shop around (especially for holidays and flights) you could probably find bigger discounts."
The financial expert concluded that consumers should be aware of what they actually require from a credit card, and consider other types of rewards that credit cards offer by comparing and switching card suppliers.
Use uSwitch's impartial calculator to compare all credit cards and find the right one to suit your needs.