May 20, 2006

By Peter Kenny

A report just published shows that over 55 per cent of all purchases using a credit card are now used on everyday items like groceries and petrol.

The Morgan Stanley Card Index is a study, which is used to look at credit card spending predictions. By asking 2000 UK residents it was found that Britons are increasingly becoming aware of the advantages of using their for day to day purchases.

Credit card usage has been found to have increased by 11 per cent over the last 6 months. Women are shown to be the biggest users of for every day purchases with 59 per cent of their credit card spending going on general home items, groceries and petrol. Groceries account for over 80 per cent of all every day purchases made using a credit card.

Patrick Muir from Morgan Stanley said, "Credit cards have changed enormously over the years and so has the way that people use them. Savvy credit card customers are taking advantage of credit card incentives and beginning to use their cards more and more for everyday purchases. Britons are increasingly more likely to shop around and see how they can be rewarded for their spending with loyalty schemes such as cash back, in addition to taking advantage of the interest-free period that many cards offer."

This report indicates that consumers are becoming savvier with their credit card usage. Many offer 0 per cent offers on all purchases for up to the first 12 months of account opening and this period is ideal for adding purchases to a credit card, especially when it does not attract any interest. Cash back cards and that offer purchase rewards are another reason more and more people are willing to add smaller, less significant purchases to their.