Cash back cards set to become scarce

Over the years many consumers in the UK have taken advantage of cash back credit cards, and these are a type of reward credit card that enable consumers to earn a set level of cash back on every pound that they spend on the card on purchases.

Cash back credit cards have become increasingly popular, particularly amongst those that tend to use their cards regularly and repay the balance in full each month.

However, since the onset of the credit crunch the number and types of credit cards available – and access to these cards – has become far more restricted, and many people that may have wanted these cash back credit cards will have been disappointed to learn that they could not get them.

Recent reports have suggested that things could continue to get worse for those that want cash back cards.

It has been suggested that the number of cash back credit cards that are available could continue to drop despite the slight ease up in the financial markets, and this means that those hoping to get hold of a cash back credit card to earn some money back on their purchases.

Many people may therefore have to look at alternative rewards credit cards if they want to get something back from the credit card provider for using the card.

According to figures 25 percent of credit cards offered cash back six years ago, but this has now dropped to less than one in twenty.

One official said: ‘Credit card providers are facing a number of hits on their established income streams and I regard it as inevitable that credit cards on offer will become less attractive as the providers seek to regain the lost income in other ways and also cut back on the cost of reward schemes.’

Tags: rewards credit cards, personal finance, figures 25 percent, Credit Cards, reward schemes