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.
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.