While rewards-based credit cards may have become less available in the days following the credit crunch as personal and business bank account providers tightened their belts to aid economic recovery, the source of credit has begun to make a comeback once more.
The rewards-based cards have been popular with consumers over the years, as they have been able to benefit from schemes offering air miles, cash back, travel rewards, and other discounts for using the card to make purchases. However, in the wake of the worldwide financial recession, the number of cards on offer from credit providers was scaled back, with many raising the difficulty to obtain one of these cards – leaving customers with much less choice than in the past.
However, a recently published research study found that these particular types of credit cards have begun to enter a renaissance, leading to consumers being able to look forward to increased availability and choice once more. Many of these cards are ideal for consumers who can repay their balances every month, as the rewards-based credit cards that are emerging often carry higher interest rates than others, financial experts warn.
Only 27.4 per cent of credit cards offered any sort of reward, Sainsbury’s Finance, said. The supermarket giant’s banking arm, which conducted the study, added that today this figure has grown to 42 per cent, with one official stating that while his will undoubtedly be welcomed by consumers dealing with having to do more with less due to cost of living increases, Brits need to be careful to select a card that does not make it difficult to redeem rewards.