One in three credit card holders don't make use of reward schemes

By Lucy Bower

One in three people with a credit card don't use their reward scheme because they think it's not worth it, according to an Asda Money survey.

If you have a credit card and it has a reward scheme, you can earn points or cashback whenever you spend on it. However, as reported in the Telegraph, one in three credit card users say they have to spend too much to get any kind of decent return, and 24% (one in four) say it takes too long to get money back - it can take until the end of the year to earn any money back.

The survey suggests that one in five credit card holders don't use any kind of reward scheme and a quarter say these schemes don't save you money on a day to day basis.

Asda has a credit card that offers cashback, with better incentives for people who shop in its stores or petrol stations.

A spokesperson for Think Money commented: "It's important to do your research before taking out a credit card, because they are not all the same.

"Some credit cards are more suitable for people with a bad credit history, some are targeted at wealthy people, and some offer rewards or cashback. If you apply for credit and you're rejected, it stays on your credit report, so it's important to apply for the right kind of credit card for your circumstances and avoid lots of applications at the same time.

"Finally, to get the best out of credit card rewards, you should aim to repay the full balance every month, because if your card charges interest, this is likely to outweigh any financial reward."

Image © iStockPhotos / Mutlu Kurtbas

Tags: credit card, reward schemes, cashback, Asda, Asda credit card, Telegraph, bad credit

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