Tax planning news
Cardholders clamour for few remaining reward schemes
24 April, 2006
Almost one third of credit cardholders with a loyalty scheme have redeemed points or miles, or have been paid cashback in the last three months, according to a new report.
The Morgan Stanley Consumer Banking Group survey also found that 46 per cent of all UK credit cardholders take advantage of a loyalty scheme that is attached to their credit card.
While demand may be rising, the news also comes as many credit card companies have reduced or scrapped their reward schemes in recent months.
Patrick Muir, marketing director for Morgan Stanley Consumer Banking Group, said: “Credit Card reward schemes can be a great way for cardholders to be rewarded for everyday spending, but there is no point in having one if customers do not redeem their points. Savvy spenders should consider how useful the rewards actually are and how easy they are to redeem.”
The credit card with the highest percentage of cardholders redeeming points was Goldfish credit card, with 46 per cent of them having redeemed points over the last three months.
Airmiles was bottom with just nine per cent of their loyalty programme cardholders benefiting from a free flight over the last three months.
Patrick Muir said: “Our research tells us that those wanting a variety of retailers at which they can redeem their loyalty points would be best placed taking out a Goldfish card, whilst those who want to be able to use their rewards anywhere would be wise to consider a cashback credit card.”
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