Monday 4th September 2006
Cash back credit cards are now more popular than zero per cent balance transfer cards, according to new research from Morgan Stanley.
The study indicates that 21 per cent of cardholders in the UK own a credit card that contains a cash back reward compared to the 17 per cent who have a zero per cent card.
In addition, 15 per cent of cardholders have a card that allows them to accumulate points to redeem at a specific firm, such as Sony or Amazon, while a further 15 per cent own cards that allow points to build up with a high street retailer.
Patrick Muir of Morgan Stanley explained that the firm has seen a shift in the dynamics of the credit card market as cardholders become increasingly aware of long-term benefits of reward cards and "turn their backs on short-term offers".
"An increasing number of our customers are using their credit cards for everyday purchases such as groceries and petrol to benefit from cash back and rewards," he added.
Some 52 per cent of UK cardholders have cards that do not offer any reward, meaning there is plenty of scope for consumers to make their money work harder.
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