Sainsbury's credit cards offers cash back alternative

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New research from Sainsbury's Finance shows that just 13 per cent of credit card providers offer cash back on spending.

This is a dramatic reduction when compared with figures from 2005, which showed that 43 per cent of credit card deals came with a cash back option.

However, the firm has said that consumers should consider alternatives to cash back, such as reward schemes, which can offer a much better rate of return.

Sainsbury's Finance notes that while the average cash back rate in the UK is 0.52 per cent, its Nectar points reward scheme offers the equivalent of two per cent cash back on Sainsbury's purchases.

Stuart McKeggie, head of Sainsbury's Credit Cards, said: "The number of credit cards offering cash back has fallen but there are cards out there offering great reward alternatives.

"People need to ask themselves what they need from their card and pick the right one for their wallet."

Recently Sainsbury's Finance increased the introductory interest-free period on its 0% credit cards from three months to ten months.

The increase also coincided with a rate reduction from 16.9 per cent to 15.9 per cent.

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Tags: credit card providers , 0 credit cards , nectar points , credit card deals , reward schemes , reward scheme , back option , dramatic reduction , sainsbury , free period , rate of return , wallet , three months , consumers , finance ,

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2009-11-25 13:18:30 © Moneyextra.com