Credit cards with reward schemes can offer good value over the long term, one expert has claimed.
According to Donald MacLeod, head of cards at Sainsbury's Credit Cards, while many providers offer an interest-free period, not all offer other incentives, potentially making such products more attractive.
He said: "It's moving it away from being a pure borrowing item ... to actually being a transactional product that's rewarding you with every transaction."
People will earn points every time they use their credit card and these can be redeemed in future, he added.
According to research by the firm, people expect to put 42 per cent of their summer sale purchases on a credit card.
This means a total of £3.29 billion will be placed on credit cards because of seasonal purchases, the data showed.
A study undertaken by payments service Apacs, indicates that 62 per cent of the population held a personal credit card in 2007.
News Side
Reward credit cards offer long-term value, expert claims
Mon, 30 Jun 2008
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