Cashback key to credit card success

Nearly one quarter of credit card users – 7.7 million people – are considering reducing the number of cards that they have and consolidating them into a single card that offers them all the features they require.

In a survey of consumers, Abbey found that cashback is considered the most important feature for a credit card to have.

While 20 per cent said it was vital they could get cashback, 16 per cent said they would only choose a card with a low APR and eight per cent were hunting for a card with a consistently low flat rate.

Another six per cent wanted shopping discounts, while four per cent hoped to find a card that would reward them with free air miles. Only one per cent of the sample was looking for a charity credit card.

“In the current climate, people are becoming more and more savvy about the impact numerous cards have on their credit rating and a significant number of cardholders are now looking to consolidate all their credit cards,” said Roger Lovering, managing director of Santander Cards UK.

“Abbey looks set to benefit from this as cashback is the feature people say they value most.”

According to MoneyExpert.com, a growing number of cards are now offering cashback schemes, but the average rate offered is just 0.72 per cent.

Tags: card success, Technology Internet, Tesco Clubcard, Credit card, credit rating, low flat rate, cashback