Credit card users should take advantage of rewards

Many consumers are failing to cash in on credit card loyalty schemes.

The unstable economy has causedconsumers to become more cautious when it comes to credit, with morepeople steering clear from credit cards and turning to debit cards.

As a result, credit card providers are beingforced to make their cards a more attractive option by providingbetter rewards to the consumer.

A number of credit cards come with loyalty schemesthat reward customers for using their cards to make purchases,offering benefits in a bid to win their custom, but research suggeststhat many are failing to take advantage.

The BarclaycardFreedom rewards scheme was launched on March 17, providing all barclaycard credit cardholders with the ability to accumulate rewards when making purchasesat over 30,000 retail outlets, including Shell, Flight Centre, LAFitness and Pizza Express.

The scheme is automatically activefor all Barclaycard customers and provides double reward points worth2% of spending on card purchases made up until 17 May.

Customerscan view their reward balance before entering their PIN every time apayment is made.

The Barclaycard Freedom scheme is easy touse, giving consumers the ability to benefit from a reward instantly,unlike most rival cards that tend to offer vouchers periodically orrequire complex procedures in order to access rewards.

Manyhousehold names have launched their own credit cards offeringcustomers discounted products and services in an effort to broadentheir markets. For example, the Tesco credit card offers increasedClubcard points, allowing customers to boost rewards for shopping atTesco.

It seems that reward schemes are coming back intofashion, but it is recommended that those looking for such a schemeshould make sure they fully understand the terms & conditions andfind a card that best suits their spending habits. For example, aTesco credit card would be a great choice for somebody that uses theTesco stores to buy their groceries and Tesco fuel stations forrunning their car.

Tesco Rewards not only allow consumers tosave in Tesco stores, but also in a wide range of partner companiesincluding Virgin Holidays, Hilton Hotels, Cineworld cinemas andrestaurant groups Pizza Express and Prezzo.”

Something thatpeople must remember is that these cards are only useful to thosethat pay off their credit card bill in full at the end of eachbilling period. Outstanding balances are likely to accumulateinterest charges that would outweigh any benefits from rewardschemes.

New research from Airmiles - the longest-runningloyalty scheme in the UK, indicated that 70% of Britons admitted tomissing opportunities that could have earned them reward points, andover half of the 30 million credit card holders in the UK do not havea reward scheme.