28 August 2008
Greater transparency is needed with regards to the value of credit card reward schemes, Sainsbury's Credit Cards has claimed. Research by the company shows that there are now 190 credit cards on the market offering reward schemes, up from 122 in 2005. It also reveals that while 51% of all credit card holders have a reward scheme linked to their plastic, only 23% have claimed any rewards in the past year. When asked to cite their reasons for not taking up the rewards on offer, 42% of respondents said they were too small to bother with. Around 23% said they did not know how to claim their rewards, while 24% said the process for doing so is too difficult. Donald MacLeod, Head of Cards at Sainsbury's, said: "The credit card industry is increasingly using reward schemes but our research suggests that many of these either offer poor value or, because the rewards are too difficult to redeem, a false value." Figures compiled by uSwitch.com show that gross credit card lending has increased by an average of £179 million per quarter over the last year.
© 2008 Adfero Ltd
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