Credit cards that offer little in rewards

October 16, 2006

A recent report published by credit card provider, American Express, highlights the fact there some 20 million cardholders in the UK do not use cards that offer any type of reward or cash back.

Despite the fact there are many credit cards that offer rewards or cash back when used, more than 43% of cardholders continued to use a card that brought no benefits whatsoever. American Express suggests credit card holders could do more, if not for themselves then alternatively for charities.

The report discovered that 86 per cent of cardholders wished to contribute more to charity, however, 32 per cent said they could not for cash reasons.

The report by American Express coincides with “National Giving Week”, an event run to encourage people to give more to charity.

Rather than let their card use be “passive” American Express are urging consumers not to let their spending go un-rewarded and consider using a credit card that gives donations to charity based on what they spend using their card.

Kate Harris from American Express, said, “This research shows that many credit card holders still aren’t getting anything back for their spending, but by making a small change to their wallet, they could collectively make a big difference to good causes”

"As National Giving Week is asking people to ‘give it up for’, we are urging credit card holders to give up their passive plastic and to put their spending power to better use"

Interestingly just last week APACS reported that more people are now concentrating on paying off their credit card debt and in fact credit card repayments are rising. According to the Bank of England credit card repayments are at their highest level since 1998 at 95.3 per cent.

With credit card balances being cleared, consumers have the opportunity to use a credit card that either rewards themselves or a charity.