Home Credit On the cards: loyalty points to pay for Christmas

On the cards: loyalty points to pay for Christmas

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On the cards: loyalty points to pay for Christmas

Four out of ten Brits will use accumulated loyalty points from reward cards to help pay for Christmas, according to new research.

Brits will use around £4.3 billion of points they have earned from loyalty cards to help fund festive spending, it is revealed.

Figures from Halifax show that 40% of shoppers will use points granted through loyalty cards this Christmas and more than nine out of ten (92%) of Brits have at least one loyalty card.

Those with loyalty points to spend at Christmas will use their points for food (35%) and presents (32%). Four out of ten (41%) said that earning loyalty points affects where they shop.

Every little helps?

The typical balance on loyalty cards is £115.06, with women on average having £103.43 compared with £128.65 for men.

But the most popular loyalty card, according to the research, is the Tesco Clubcard, held by 75% of those interviewed. This was followed by the Nectar Card (71%) and Boots Advantage Card (59%).

The figures found that the average balance on a Tesco Clubcard is £72.52, £77.38 on a Nectar Card and £21.70 on Boots Advantage. However, those who earn loyalty points via a financial product have far higher typical balances – on average, £101.19.

Right card

There are a number of credit cards which offer rewards points based on spending, some of which are linked to individual retailers while others are more flexible.

Barclays Freedom Rewards card gives £30 of vouchers when you first take out a card and spend at least £500 in the first three months, then one point for every £1 spent, rising to three points at some retailers including BHS and Currys.

NatWest’s Your Points World Mastercard gives one point for every £1 plus 2,500 bonus points when you take out the card. Points can be used at various retailers and travel companies including Easyjet, Marks & Spencer and Amazon.

Tesco Clubcard Credit card gives one point for every £4 spent, as well as standard Clubcard points. Both these cards have periods of 0% interest on spending – all, including Barclays Freedom Rewards, offer periods of 0% on balance transfers.

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