There are many situations where people have to deal with unexpected situations that need to paid for, breakdowns in the home or car for example. However around 7.5 million people in the UK say they need their credit card to cover these problems say the Alliance and Leicester.
With a washing machine costing around GBP300 and a boiler over GBP1,000 such problems can become far larger when there are insufficient funds to cover the costs. Around 25 percent of those surveyed by the Alliance and Leicester said they could not manage anything over GBP100, while around half said GBP500 would be the most they could cover.
These people look to their credit card to cover such costs, though the recent credit problems are making this a little more difficult than before. Alliance and Leicester credit cards or alternatively a regular savings account can help cover these situations and get customers through a difficult situation.
Sainsburys Bank is supporting the use of reward schemes for credit card customers, saying they can help save money.
With over 8 out of 10 credit card users saying they will probably be spending less than last year on their cards the providers are looking at ways to incentivise their customers to use them, and reward schemes have proved very successful. The Nectar scheme is typical of the new approach to customers say Sainsburys Bank. Such cards provide real benefits to users, with the ability to save money on other items they use in their lives and ultimately reducing their costs.
The other point about reward schemes said the Sainsburys Bank spokesman is that they differentiate the credit card from many others. The usual 0 percent interest offers are everywhere so something different and real is the best way to attract users.
Sainsburys Bank believes that credit card users are not claiming the rewards being earned through loyalty point schemes, ultimately costing themselves money.
Looking at the last year the Sainsburys Bank study found that, of over 8 million earned rewards on their credit cards. However only 3 million people claimed their rewards. The biggest reason cited for not claiming was that the value of the reward was too small, this being the reason for over 40 percent. Over a quarter of people felt the process to get the rewards took too long and just under a quarter said it was too difficult.
A Sainsburys Bank spokesman suggested that credit card companies should look addressing these issues since both card provider and consumer would both benefit.
