Fewer credit cards offering cash back rewards

Out of the 224 credit cards available in the UK, new research from Sainsbury's Finance reveals that only 13 are still offering cash back on spending (non introductory) compared with 43 in 2005. The average cash back rate is 0.52%. Far from this leaving card customers high and dry with no means to earn on their spend, Sainsbury's Finance is urging people looking for a card to consider those offering reward schemes instead.

The Sainsbury's Credit card offers a cash back equivalent of 2% on Sainsbury's purchases in the form of Nectar points that can be redeemed in store or with Nectar. Sainsbury's shoppers are rewarded with double Nectar points on their shopping in store, online and in petrol filling stations for two years when taking out a Sainsbury's credit card.  This means that customers spending £50 a week on their card will receive the equivalent of one week's spend back - £52 worth of Nectar points a year.

Stuart McKeggie, Head of Sainsbury's Credit Cards said: "The number of credit cards offering cash back has fallen but there are cards out there offering great reward alternatives.  Those that shop in Sainsbury's and use the Sainsbury's credit card, for example, can earn the equivalent of 2% cash back, well above the average cash back rate of 0.52%. People need to ask themselves what they need from their card and pick the right one for their wallet."

Recently, Sainsbury's increased the 0% introductory period on purchases on its credit card from three months to ten months and has reduced its typical APR from 16.9% to 15.9%, going against the current trend in the credit card market.

The Sainsbury's credit card offers Nectar points equivalent to 2% cash-back on Sainsbury's purchases(2). There is no limit to the amount of points customers can earn and these can be easily redeemed at a Sainsbury's checkout or any other company that is part of the Nectar scheme. Card holders can also receive Nectar points on non Sainsbury's purchases as well.  

To find out more about the Sainsbury's credit card, visit sainsburys.co.uk.