4 September 2006
Consumers are increasingly choosing credit card reward schemes, according to new research.
New figures from Morgan Stanley Credit Card have shown that consumers are shunning the traditionally popular 0% offers in favour of cards which offer a variety of reward schemes and cash back deals.
At present, 17% of UK cardholders have a 0% per cent offer on their product compared to 21% who have a credit card that offers cash back rewards.
Some 15% of credit card holders like to take advantage of a points-based high street reward scheme such as Goldfish while another 15% have cards which allow them to collect points for redemption with one partner such as the Amazon or Sony credit cards.
Patrick Muir, Morgan Stanley Credit Card marketing director, said: "We are seeing a shift in the dynamics of the credit card market as cardholders wise up to the long-term benefits of reward cards and turn their backs on short-term offers.
"We have found that an increasing number of our customers are using their credit cards for everyday purchases such as groceries and petrol to benefit from cash back and rewards, with our average cardholder redeeming £105 every year."
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