Cashback credit cards are a better option than loyalty cards for most UK consumers, an expert has claimed.
However, loyalty credit cards could be a good way to see returns on spending, states Robert Kenley, head of credit cards at Moneysupermarket.com.
Mr Kenley commented as the new Lloyds TSB Premium American Express card was launched, which offers a range of benefits to users.
The credit card carries a £4.95 fee but is upgradeable to a £8.95, which has air miles potentially saving frequent fliers around £150.
The expert claims that the benefits offered by the card will only be advantageous to savvy consumers who know how to use their credit card wisely.
"I expect LloydsTSB is banking on the fact few people will use the card to the best advantage and will not get full value for money on the benefits for which they’re paying the fee.
"Most people would therefore be better off opting for the pay-as-you-go route and buying the additional elements separately when needed."
A recent study by Moneysupermarket.com showed that Britons could spend around £9 billion on credit cards this summer.




