Around 7.55 million Brits use their credit cards for everyday purchases and clear their balances every month, new research has found.
According to Sainsbury’s Bank, the average monthly spend figure for a typical ‘everyday’ credit card user is £483, but some 1.41 million users regularly put £750 or more of their overall monthly expenditure on their credit card.
Paying by credit card not only offers more security than either cash or debit card, but also provides a great opportunity to earn something back on money you had to spend anyway.
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Choose the one that most benefits you
Reward cards come in two formats: A straight cashback offer, or a loyalty scheme where you accrue points for every £ you spend, which you later redeem as vouchers to spend in specified retailers.
Given the high cost of living in the UK today, such cards can certainly help ease the load, with some offering to reimburse you up to 5% of your spend.
Of course they are only a good idea if you are able to clear your debt in full, and won’t be tempted into spending more than you originally intended.
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Many are losing out
Unfortunately, of the 7.5 million people who use their credit card daily, it is estimated that only half actually use reward cards.
Considering this group spends an estimated £3.64 billion every month, it’s clear that they are missing out on a massive amount of savings.
If you are in the market for a reward card, take the time to choose the one that will most benefit you.
So if, for example, you are a frequent flyer, then you should consider one that provide you with free airmiles when you spend. (The British Airways Amex and Virgin Atlantic reward card are both great offers).
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Amex Platinum is our winner
Our best buy reward card is still the Amex Platinum Cashback credit card.
Not only does it have the highest introductory cashback rate on the market (5%), but it also allows you to earn money wherever you use it – many reward cards are only valid in certain stores and offer a greatly reduced rate when you spend elsewhere.
The rate does fall to between 0.5% and 1.5% (depend on how much you spend) after the first three months, but it all adds up.
See our best buy reward cards
