Increase in number of rewards based credit cards

Over the years, many people who enjoy the ease and convenience of using credit cards have benefitted from rewards based credit cards, which have enabled them to earn various rewards for using their credit cards. There are a number of rewards that are offered by these cards, such as discounts, travel rewards, cash back, air miles, etc. and consumers have been able to enjoy the benefits of choosing the one that best suits their needs.

However, since the global financial crisis, which saw the number of rewards based cards fall through the floor, consumers have found it increasingly difficult to find and be accepted for a suitable credit card. Lenders have not only dropped the number of rewards based cards that they offer but have also made it more difficult to get these cards, which has left consumers with far less choice.

However, according to a recent report, the number of rewards based credit cards are on the up again, which means that consumers can now start looking forward to increased choice and availability again. Those who repay their balance in full each month are the ones that will benefit from these cards as these are the people who will not be hit with interest charges. Those who do not repay their balance in full will fare better with a low interest or interest free credit card than a rewards based one.

The figures, released by Sainsbury’s Finance, showed that 42 percent of credit cards now offer some sort of reward, which is from just 27.4 percent two years ago.

An official from Sainsbury’s Finance said that customer should choose their rewards wisely: “As the cost of living increases, people are increasingly looking to get more for their money and also be rewarded for being loyal customers. However, the financial value of rewards is worthless if it is difficult to redeem them.”

Tags: cash, customer, cost of living increases, loyal customers, air miles, report

NatWest overseas card hike

NatWest has hiked the cost of using their debit card abroad by two-thirds.

From June 5th, anyone using a NatWest debit card will be charged £1.25 rather than 75p for each transaction, while the maximum charge incurred for a cash machine withdrawal has been raised from £4 to £5.

“This is the latest in a long line of fees that banks are now charging to try to squeeze more money from their loyal customers. It follows closely after the RBS group’s decision to charge credit card customers £12 if they move house and do not update address details,” commented Nick White, director of financial services at price comparison website uSwitch.com.

“We estimate that this move could rake in an extra £10.18 million for the bank – a savvy move by NatWest.”

Many people prefer to use their credit card instead to make transactions as charges can be less, although withdrawing cash on credit can incur large fees.

However, NatWest said that as it had lowered its cash withdrawal fee from 2.25 per cent to two per cent, although on a £100 transaction this will only save 5p.

Tags: cent, loyal customers, withdrawal fee, com, National Westminster Bank, transaction, cash withdrawal fee, Debit cards