New research from Sainsbury’s Bank has found that 8.65 million people plan to take a new credit card out this year.
Almost 30 per cent of those people say that a loyalty reward scheme is the most important factor in choosing a card. Ten per cent of those who are looking for a new card say they are doing so because their current provider does not offer loyalty rewards, whilst eight per cent say their loyalty rewards have been reduced or removed.
The Sainsbury’s research finds that only 34.4 per cent of the credit cards currently on the market offer loyalty rewards. This is, however, an increase on last year when just 30.4 per cent of cards offered loyalty rewards. Of the cards that do offer loyalty rewards, 14 offer cashback, with the average credit card cashback deal now being 0.8 per cent.
After loyalty rewards, the next most important thing to those looking for a card was an interest-free period or a lower rate of interest. Consumers said they were also interested in add-on benefits such as free travel insurance.
Stuart McKeggie, Head of Sainsbury's Credit Cards, said, “We're encouraged by the sign that more of us are shopping around for a credit card that rewards our custom. But with so many different cards to consider, it's easy to become overwhelmed.
"When you're looking for a card, the most important thing is to choose a card that gives you the maximum benefit for your particular card usage," he added.
Financial News
