15 million miss out on free gifts this Christmas

Only 45% of UK Credit Cardholders are using a Credit Card that rewards their spending in any way, according to research by American Express Platinum Cashback Credit Card. More than half of all Credit Cardholders (51%) do not have a reward card, 8% fewer than the 2006 figure (43%).

That's 15.7 million Cardholders missing out on cashback, reward points, money off vouchers or air miles that they could be pocketing for free.

The American Express survey showed that over half of Brits (52%) are looking to cut back on Christmas expenditure this year as a result of spiralling living costs. With money tight for many, American Express is advising shoppers to be savvier about their spending and use a payment card that earns them cash as they spend.

According to the research, of those with at least one reward card (45%), almost half (41%) said they had a cashback card - a card that gives them money back for their spending.

Tom Allder, Vice President UK Lending, American Express, said: "People are waking up to the benefits of having a Cashback Card, we've more than doubled the number of new Platinum Cashback Cardholders this year.

"But our research shows that many Credit Cardholders still aren't getting anything back from their spending. In the current environment it makes sense for people to look for ways to make their money go further."

Top 5 areas where cashback earned is being spent:

A quarter (25%) save it
Over a fifth (21%) use it towards household bills
11% put it towards something special for themselves/ their family
One in ten put it towards the cost of Christmas
9% - spend it on entertainment

"People are missing out on earning Cashback on their Christmas spending. What's more, if they get a Card now, they will get their annual Cashback just in time to pay for next Christmas" continued Allder.

The market leading American Express Platinum Cashback Credit Card offers new applicants cashback at 5% for the first three months on up to £4,000 of spending. After this period cashback is calculated at tiered rates:

0.5% for aggregate annual spend amounts up to £3,500
1% for aggregate annual spend amounts from £3,501 to £10,000
1.5% for aggregate annual spend amounts in excess of £10,000

The Card has no annual fee and a typical 18.9% APR variable for purchases. Cashback is paid annually on the Card anniversary date. In addition, Cardmembers can apply for fee free Supplementary Cashback Credit Cards for friends or family members to ensure they make the most of cashback earned on everyday spending.