Some 29 per cent of those looking to compare credit cards have been found to value a loyalty or reward scheme as their main consideration when choosing.
According to new research from Morgan Stanley, consumers are now regarding reward schemes as important as balance transfer or interest rates.
By comparison, 12 months ago, seven per cent of consumers were found to value loyalty schemes as their primary consideration when applying for a credit card.
The popularity of reward schemes on credit cards – which vary from offering cash back and retail rewards to a card with travel offers attached to it – is “no surprise”, said Patrick Muir, marketing director of Morgan Stanley Consumer Banking.
“With the majority of people paying off their credit cards in full every month, using a credit card with a reward scheme really makes sense,” he commented.
“People are increasingly savvy and are realising that credit cards…can genuinely reward customers for everyday spending.”
A number of credit cards currently offer loyalty or rewards schemes, including the GM Platinum Credit Card, the Nectar Credit Card and the British Airways Credit Card.
This article: © Moneyexpert Ltd.