Cardholders take advantage of reward credit cards

13/03/2008

A new survey has shown that people are taking advantage of reward credit cards in the uk.

Principal Consultant, David Black, Banking at Defaqto commented: “There are a variety of reward based credit card schemes and these include points schemes, air miles and cashbacks. Some of them can be very difficult to compare and, certainly in the case of cashbacks. If you are unlikely to repay the entire balance every month you should concentrate on the interest charged rather than the rewards offered.”

Alliance & Leicester moneyback Rewards Card showed a 1-point for each £1 spent. 2,000 bonus points shall be awarded if the card is used in the first 3 months. 4,000 points will be rewarded if a £20 shopping voucher is produced.

American Express Platinum MoneyBack Card offers a 5 per cent cashback in the first 3 months of £4,000 spent. 0.5 per cent towards the first £3,500; 1 per cent on spendings between £3,501 - £10,000; Finally 1.5 per cent on spending in surplus of £10,001.