Cashback credit cards could boost spending power this Christmas, it has been suggested.
Christmas shoppers could be missing out on the chance to earn rewards on their festive spending, it has been claimed. According to American Express, more than half of the UK's credit card holders do not have a reward card, which means they could be giving up useful cashback, reward points, air miles and money off vouchers.
The credit card provider found that 52 percent of British consumers intend to reduce their expenditure this Christmas as they struggle with higher living costs. It points out that making the most of the rewards on offer from credit card firms could allow families to boost their spending power.
However, consumers applying for cashback credit cards should make sure they are able to repay their balances in full each month, otherwise the rewards they receive could be eclipsed by the interest they are charged on their outstanding debt.
Tom Allder, vice-president of UK lending at American Express, said: "In the current environment it makes sense for people to look for ways to make their money go further."
Figures from the UK payments association Apacs show that 172,706 credit card purchases were made during September - an increase of 9.4 percent on the previous month.
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