Asda Money says ‘reward apathy’ is leading to millions of people accumulating benefits they never use, and ultimately missing out on cash and rewards they’re entitled to.
Reward credit cards were designed to offer consumers incentives to manage their money efficiently whilst accumulating rewards that would benefit them in the long term. Asda has revealed that 13.1 million credit cards holders do not use the benefits and rewards they’re earning and are entitled to.
The research reveals that nearly three quarters of Brits (that’s 37 million) own at least one credit card, with 18.6 million owning two or more.
Those aged 55 and over are the most likely to have multiple credit cards with 42% of this age group owning two or more cards. Of those with a credit card, the main reason for using them is to protect their purchases (34%), whilst over a fifth use it to earn reward points.
As part of the research Asda Money looked into the main reasons for using credit cards across the country.
The 18-34 year old age group say that they mainly use their card to tide them over (16%) as well as a chance to improve their credit history.
The over 55s however use cards to protect their purchases (45% of card users). On the whole the UK use credit cards to pay for big purchases (23%) and spread the cost (21%). It is no surprise that the main credit card purchase nationally is on holidays and breaks with an average amount of £416 a year put on a credit card. Yet there is an additional average of £221 on holiday spending and travel money per person per year.