Cash back credit cards and other reward schemes are now more popular than zero per cent balance transfer deals, new Morgan Stanley figures have shown.
More than a fifth of all cardholders – 21 per cent – hold a reward card, while 17 per cent have free balance transfer deals.
The research showed that 15 per cent of credit card users used points based schemes such as Goldfish while 15 per cent use cards for redemption with partners such as HMV.
“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,” said Patrick Muir, of Morgan Stanley.
“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.”
Most card users – 52 per cent – still do not belong to any membership reward scheme, however. The over 50s were twice as likely to belong to a scheme as the under 30s.
This article: © Moneyexpert Ltd.