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Sainsbury`s Bank: Credit card rewards worthwhile - if you redeem them

17/07/2008

Sainsbury`s Bank has commented on the use of reward schemes for credit cards this week.

While the schemes are "absolutely" worthwhile, a small proportion of those who collect rewards actually redeem them, the bank said.

In the last 12 months, 8.19 million people collected credit card rewards yet three million redeemed them. According to the research by Sainsbury`s Bank, 42 per cent or customers said the financial rewards were too small while 40 per cent said they "could not be bothered."

Almost a quarter (23 per cent) said they didn`t know how to use the rewards.

Given these statistics, it may be suggested people are risking credit card debt due to schemes that will ultimately give no return.

Head of cards at Sainsbury`s Finance Donald MacLeod said consumers should explore the benefits of cards with such schemes.

"You might be spending merrily away and collecting all the points, but when it comes to the crunch you can`t do anything with them," he warned.

However, Mr MacLeod said collecting rewards was worthwhile for the majority of people and not redeeming them was a waste.

Sainsbury`s opened its bank in 1997, the first major British supermarket to do so.

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