Customer failing to collect rewards on credit cards
Many people in the UK that have credit cards decide to opt for some form of rewards based credit card in order to benefit from a range of rewards that can be accrued from simply using the card, such as reward points, discounts vouchers, air miles, and more.
These cards have proven popular because of the benefits offered, particularly amongst consumers that tend to repay their balance in full each month and therefore do not have to worry about interest charges.
However, despite consumers’ enthusiasm for this type of rewards based credit card recent research carried out by MoneyExpert.com has shown that many customers are failing to actually cash in on their rewards.
In fact, the research indicated that a whopping 83% of consumers have failed to collect over four billion pounds worth of rewards, such as air miles, gift vouchers, and loyalty points. The research showed that around 57% of consumers had accrued an average £42 worth of rewards points on their cards, and around 20% had air miles amounting to over £160.
An official from MoneyExpert stated: “It’s fairly typical for a company to offer customers an incentive to join their club. Whether it’s reward points in a supermarket or air miles for choosing a specific airline, loyalty is meant to pay. However our research shows that while these schemes are a clear incentive to buyers, we as customers do not fulfill our end of the bargain and spend our hard earned rewards. Which means providers have won twice by getting your business and then not having to reward your loyalty as agreed.”
He added: “If this shows anything it’s that there are very few reward schemes that genuinely work. Perhaps the best bet is to stick to a cashback credit card, where at least you are automatically rewarded in pounds and pence.”
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