New credit cards make it worth shopping around

A spate of new credit cards have been issued in recent days, all trying to entice you with reward points. With points to be gained on each spend, and the points being exchangeable for products and services, rewarding customer loyalty is now a key selling point of any new card.

Of course, one reason for building loyalty into the cards are that it is hoped people will move around less as they seek the best deal available. Competition among introductory offers remains strong, but reward points provide an incentive to stay with the one card for greater financial benefits.

The new cards, issued by companies such as Sainsbury’s, the AA and Barclaycard, are offering a variety of incentives for new customers. For instance, Sainsbury’s Nectar card now has both a low interest rate of 12.9 per cent on purchases and balance transfers, as well as double points when you shop with the card. The points can be used for money-off vouchers on further shopping or for purchases made on the card website.

The reward card offered by the AA, on the other hand, gives you one point for each £2 that you spend in any shop, as well as the better deal for members of one point for every £1 you spend.

Although cashback offers are now less popular among issuers, Barclaycard’s Freedom card allows customers to earn 1 per cent cashback on most transactions and a range of special offers with selected retailers.

These are rewarding times for consumers, and issuers are keen for your business.