7.55 million Brits Favour Credit Card Over Cash for Everyday Purchases

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One in two (48%) of all credit card holders don't earn any rewards from expenditure on their cards(2). The Sainsbury's credit card offers Nectar points equivalent to 2% cash back on Sainsbury's purchases

New research(1) from Sainsbury's Credit Cards has identified a breed of "everyday credit card users" who use their credit cards, as they would a debit card or cash, for everyday inexpensive purchases of £20 or less, and who clear their balances every month. The bank's findings indicate that there are some 7.55 million of these everyday credit card users who spend a total of £3.64 billion on their cards every month.

With as many as 12 million (48%) of all credit card holders not earning any rewards from expenditure on their cards(2), the bank estimates that there could be as much as £1.76 billion worth of spend by everyday credit card users that is going unrewarded each month.

The average monthly spend figure for a typical "everyday" credit card user is £483, but some 1.41 million "everyday" card users regularly put £750 or more of their overall monthly expenditure on their credit card.

Donald MacLeod, Head of Cards at Sainsbury's said: "Although we'd never advocate people using their credit cards for everyday inexpensive purchases if they are likely to incur interest, we've identified a number of people who clearly like to use their credit card in the same way as they would cash or debit cards and who pay off their balances each month. A card like our own that rewards them for every purchase they make is therefore perfect.

"Unfortunately, recent research reveals that one in two credit card users do not see any financial benefit as their cards don't offer any financial rewards. In truth, there are fewer credit cards offering any form of financial reward linked to the amount of money spent on the card today, compared with four years ago(3), meaning there's no better time to switch to a card that gives you something back."
About the Sainsbury's credit card rewards:

  • 4 Nectar points(4) awarded for every £1 spent on the card at Sainsbury's - equivalent to 2% cash-back
  • 2 points for every £10 spent elsewhere on the card - equivalent to 0.1% cash back
  • There is no limit to the amount of points customers can earn
  • Points can be redeemed against thousands of Nectar offers by simply visiting http://www.nectar.com
  • A regular booklet offering discounts worth around £60 p.a. on a range of products available at Sainsbury's stores
  • Regular exclusive wine offers

In terms of age groups, the "everyday credit card user" who clears their balance each month is likely to be a more mature person (aged over 55), with the 55-64 and 65-plus age group brackets accounting for 48% (3.63 million) of all "everyday credit card users". The age group least likely to use their credit card in this way for inexpensive everyday purchases is the 18 - 24 year age group (representing just 7% of the total). From a regional perspective, people in London are most likely to use their credit card for such everyday purchases (24%); the least likely are those in Scotland and the West Midlands (8%).

As well as offering attractive features and benefits, Sainsbury's credit cardholders can also manage their accounts online with their convenient 24/7 online payment service.
To find out more about the Sainsbury's credit card, call free on 0800 032 1365, visit http://www.sainsburys.co.uk or pick up a leaflet in store.

Sainsbury's Finance provide Travel Insurance, Pet Insurance, Credit Cards and more

Phil Anderson / Sarah Rowan
Citigate Dewe Rogerson
020 7638 9571
Notes to editors:

(1) Based on Sainsbury's Finance analysis of data from GfK NOP. 979 people were interviewed by GfK NOP between 8th - 10th August 2008. Interviews were conducted over the phone. The consumer omnibus research conducted by GfK NOP uses a large sample size that reflects the demographic profile of GB. Given this it is possible to extrapolate figures and make projections from the research results within appropriate confidence intervals.

(2) Sainsbury's Finance has estimated the number of "everyday credit card users" who will not be earning rewards on their purchases from recent research from ICM Research who interviewed a random sample of 1,014 adults aged 18+ by telephone between 2nd -4th May 2008. Interviews were conducted across the country and the results have been weighted to the profile of all adults. ICM is a member of the British Polling Council and abides by its rules. Further information at http://www.icmresearch.co.uk

(3) Defaqto analysis (May 2008)
(4) Shop at Sainsbury's and you could earn a whopping 4 points for every £1 you spend. Pay with your Sainsbury's Credit Card and collect 2 points for every £1 you spend. Hand over your Nectar card at the same time and collect an additional 2 points for every £1 you spend.
Sainsbury's Bank:

To find out more about Sainsbury's Bank and see the latest press releases, product rates and photographs, please visit the Sainsbury's Bank online media centre at http://www.sainsburysbank.co.uk/media.

Sainsbury's Bank offers a range of quality, competitively priced, award-winning products. Sainsbury's Bank opened for business on 19 February 1997 as a joint venture with Sainsbury's and HBOS.

Sainsbury's Bank offers the following products:
Insurance: Car Insurance, Life Insurance, Home Insurance, Travel Insurance and Pet Insurance
Borrowing: Personal loans, credit cards and Drive car purchase scheme
Saving: Internet Saver, Instant Access (branch equivalent), Direct Saver account (telephone) and Child Trust Fund

For further information and general Sainsbury's Bank enquiries customers can call the freephone number on 0500 40 50 60 or visit http://www.sainsburysbank.co.uk


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Phil Anderson

020 7638 9571
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