Saturday, January 6, 2007
Category:
Consolidation
A new study from MasterCard Worldwide has shown that when looking to take out a new credit card, three quarters of European customers look for one that offers rewards.
Almost half would spend the reward points on themselves, which is surprisingly twice as many as those who would donate to a charity or environmental organisation.
Using the points to purchase luxury rewards like city breaks (33%), free cinema, theatre or concert tickets (26%), free spa days (25%), or a special house or garden makeover (24%) seems to be an increasing preference of many customers according to the findings.
As well as reward points, many customers still want financial incentives. The sectors from which consumers most want to collect rewards from are supermarkets (41%) and petrol (31%).
Customisation of rewards is vital to growing customer preference according to findings by the research. 59% of respondents said that they would be interested in a credit card that offered flexible benefits.
Frederic Conrads, Head of Cobranding, MasterCard Europe, said “Our research suggests that consumers take a very pragmatic approach to rewards on their credit cards. They want flexibility to alternate between everyday items, such as money off petrol, and the occasional treat, such as a discounted city break. A card that allows them to choose what they want, when they want it, is most likely to be top of wallet.”
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Those individuals who have multiple credit cards with high balances might find that a debt
consolidation loan could be one option that may reduce their monthly repayments. A debt consolidation loan can usually be taken over a term of 5 to 25 years and is often secured on a residential property. There is a variety of lenders offering debt consolidation loans from £10,000 to £100,000. It is however important to remember that repaying borrowing over a longer term may increase overall interest charges.
