Loyalty Credit Cards

There must be loads of us who take out a credit card, which promises us little perks, which help the credit card issuer to sell the card. We will think to ourselves that getting back something for all the money that we spend on the credit card is a good reason to take the card out in the first place.

Though how many of us actually cash them in, for the free flights or other goods that the points you have has totalled up to. Not many according to experts, who have stated that there is a £2 billion loyalty mountain sitting un-touched in discounts and goods, that to many of us holds more money in total, than we have saved in the bank.

Loyalty credit cards are usually picked because of the perks that come with them and the Brits now have over 27 million of them tucked in purses and wallets, most have a couple, though some seem to have gone a little over board, with 7% of those holding upwards of over 20 or more.

It has been said that 25% of people who have loyalty credit cards, will never cash them in, meaning that of the £2 billion worth that is currently sits unclaimed, £460 million will never reach the card owners who have run the points up. Which will only really serve to make the credit card issuer a very happy bunny indeed.

Many people just simply forget that the card that they own, will rack up the points every time that they are using them, some would probably be more interested in a gift, rather than having to go to a certain store, just to receive a in store discount and some just don’t think that what the credit card offers in perks is worth the bother.

The total of loyalty cards all over the world is currently standing at a whopping £500 billion, which could be mainly down to the consumer who has this notion that they will shop or go to the same establishments, time and again, just for that feeling of getting something for free, when they reach a certain points total.

Then they can cash in for some flights, a day out at a theme park, discount vouchers and free gifts, tough if they don’t keep a loyalty credit card with a clear balance, then they will be more than paying for the goods they will receive in interest charges, with loyalty credit cards usually having a higher APR than normal credit cards.