Credit card borrowers missing out on just rewards

Almost two thirds of credit card customers are being lured by incentives but then not reaping the rewards, reveals new research from the Post Office.

The research shows 60 per cent of card users (19.6 million) don’t take advantage of the benefits offered by their card. In fact, almost one in two (49 per cent) said they received nothing at all. And even the cardholders that do use the cash-back or reward schemes only get back an average of just £37 a year.

The Post Office’s research also revealed that at least six in ten people (sixty per cent) would stick with their credit cards if they could find one that offered long-term value across the board.

Key features that are most valued by credit card holders include low interest rates, 0% on balance transfers and 0% on purchases.

The Post Office today launches a brand new market-leading credit card offer.

Post Office managing director Alan Cook said: “Not everyone uses their card in the same way and to the best effect. The Post Office has listened to what people want from their credit card. That’s why we’re the first in the market to launch a unique card that offers a combination of features – bringing real value to customers so they can get a great deal.”

The Post Office’s new credit card deal provides customers with four unique benefits each offering the customer 0%:

0% interest on balance transfers for 10 months
0% interest on balance transfers for five months on anniversary in 2008 and 2009
0% commission on purchases overseas
0% interest on purchases for three months

Even after the promotional periods, the card still offers a highly competitive interest rate of 15.9 per cent APR typical (variable) plus it’s still one of only two providers to offer consumers 0% commission on purchases overseas.

Alan Cook said: “This offer is unique to the market – no other card provider currently offers so many features. It has been specifically designed to give our customers a competitive deal with real cost savings. For example a £2000 balance transfer on a Post Office credit card would save a customer up to £317[4] when compared to a credit card offering incentives they wouldn’t use.”

“We urge credit card holders to look at the long-term value offered by their credit card – particularly as almost a third (32 per cent)[5] credit card users have held their card over five years.”

Rewarding existing as well as new customers for their loyalty is key to the Post Office’s new credit card deal. Current Post Office credit card holders will be able to take advantage of 0% on balance transfers for five months in their next two anniversaries.

Alan Cook added: “Post Office products are based on offering customers great value and a fair deal. We recently announced our millionth financial services customer and this great new credit card deal strengthens the Post Office’s position as a leading provider in the industry.”