Credit card reward schemes 'are not always worth the effort'

By Sarah Engle, Wed 27 Aug 2008 - Published in Credit Cards

Some of the reward schemes offered by credit card companies are a poor proposition, Sainsbury's Credit Cards claims.

A report by the group claims the number of credit cards which offer a reward initiative has increased from 122 in 2005 to 190 in 2008 – a rise of 55.7 per cent.

It also found that 51 per cent of people with credit cards are eligible to claim rewards.

However, some people were not bothering to take up their credit card company's offer.

Some 42 per cent of those questioned said they did not collect their rewards because the goods on offer were of little monetary value.

A further 24 per cent said the process for redeeming their rewards was too complicated and 23 per cent said they did not know how to go about claiming their rewards.

Commenting on the findings, Donald MacLeod, head of cards at Sainsbury's, said: "Consumers have a right to know what their credit card reward schemes are worth in pounds and pence and also how easy they are to use and redeem."

In other news, research by Halifax has revealed 37 per cent of students use a credit card.

News Categories

News Archive

News: Credit card reward schemes 'are not always worth the effort'