Monday 13th November 2006
A report from Morgan Stanley has found that cash incentives are almost as important in credit card comparison as interest rates.
The bank found that 29 per cent of its customers look for reward schemes when choosing a new package, compared with 31 per cent who opt for the lowest possible interest rate.
Patrick Muir, marketing director at Morgan Stanley consumer banking, said: "With the majority of people paying off their credit cards in full every month, using a credit card with a reward scheme really makes sense."
"With focus shifting away from short-term offers, the popularity of reward schemes is no surprise," he added.
Some regions showed a clear preference for rewards, with 39 per cent of Londoners prioritising cashback programmes compared with 27 per cent who chose based on interest rates.
Meanwhile, Scotland was most likely to value interest rates, with 37 per cent listing it as a primary concern compared with 25 per cent who pursue moneyback offers.
Morgan Stanley says it has 54,000 employees working in more than 600 offices in 30 countries worldwide.
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