More than half of credit card holders opt for reward cards
More than half of all credit card users now hold a reward-based card (57%), with 37 per cent saying they chose their main credit card because of the rewards it offers, according to research from M&S Bank.
Nearly one in five UK credit card holders (19%) now use their card more frequently than they did 12 months ago, with more than a third of those saying this was so they could take advantage of rewards on offer, such as loyalty points (34%).
Of those credit card holders who don’t currently earn rewards on their spending, three in ten (30%) said they would be likely to switch their main credit card to earn rewards such as loyalty points. In addition, 30 per cent said they would use their card even more if they knew they would earn rewards or points on their spending.
However, despite many expressing a desire to earn rewards, more than half of all credit card holders (58%) have had their main credit card for more than three years and 48 per cent have never switched their main card provider. Nearly three in ten (29%) said they chose their main card because they have other products with the same provider, three in five (60%) are also unsure of the APR on their main credit card.
Sue Fox, CEO of M&S Bank, said: “We’re a nation that loves to be rewarded for our loyalty, and rightly so. It’s great to see so many people benefitting from earning rewards on their spending, but there is still a high proportion of people that aren’t fully aware of what their card offers, or what else is available to them. With so many rewards on offer, and many choosing to use their credit card more often, it’s worth spending a little time to research the card that best suits your needs to make sure your spending is as rewarding as it can be.”
The M&S Bank research reveals that over three in five cardholders (61%) have at least two credit cards. The average credit card customer spends £326.24 per month on credit cards, with women spending only slightly more than men (£330.21 versus £322.17). Those aged 55-75 spend the most, an average of £400.76 each month.
Credit cards are the most popular payment method when purchasing larger value items, such as holidays (56%), clothes (46%) and presents (44%). Credit cards were the least used method of payment for smaller value items, like newspapers/magazines (6%) and trips to the pub (7%).
Until 31st December 2014, M&S Credit Card customers will automatically be entered into a prize draw to win back the cost of Christmas every time they make a purchase using their M&S Credit Card. Customers will receive one entry every time they spend on their M&S Credit Card during the festive period and new customers taking out an M&S Credit Card before 31st December will also receive an additional five entries.
In addition, new M&S Credit Card customers can take advantage of 19 months’ interest-free shopping, as well as zero per cent on balance transfers for 15 months.
All M&S Credit Card customers earn one point for every £1 spent in M&S and one point for every £2 spent elsewhere. In addition, M&S Premium Current Account customers using an M&S Credit Card earn three points for every £1 spent at M&S. M&S points are automatically converted into M&S vouchers and sent to customers each quarter.
M&S Credit Card benefits:
19 months' shopping with no interest to pay
M&S rewards – customers earn M&S points every time they shop with their M&S Credit Card
Balance transfers – when taking out a new M&S Credit Card, customers will pay no interest for 15 months on balance transfers made within 90 days of account opening (2.9% fee applies, minimum £5)
Up to 55 days' interest-free credit – when the card balance is paid in full and on time each month
Representative 18.9% APR variable
No cash advance fee when purchasing M&S Travel Money with an M&S Credit Card
24 hour account access – online or by phone
Accepted wherever the MasterCard logo appears - that's over 33 million locations worldwide