Customers want luxury rewards on credit cards, study shows by Finance News Bulletin
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Published: 11/11/06
CREDIT CARDS LOW speed CREDIT CARDSSTUDENT CREDIT CARDS0% APR CREDIT CARDSCREDIT CARDS ONLINEBALANCE TRANSFERSMany European customers would like a praise card which offers reward points, according to novel researchSome 73 per cent of European customers would like a credit card which offers plunder such as holidays of pampering, a new study by MasterCard Worldwide revealsFurthermore, 48 per cent condition that they would spend credit card reward points on themselves, which compares to 25 per cent who would give them to a charity or ecological cause and 20 per cent who would use them on family or friends The most popular choices for credit card prize points were city breaks, free cinema, performance or theatre tickets, free spa days and a home or garden makeover
Frederic Conrads, head of co-branding at MasterCard Europe, said: "Our research suggests that customers take a very pragmatic move towards to rewards on their credit cards"A card that allows them to decide what they want, when they want it, is most likely to be top of wallet "A recent study of UK customers conducted by Morgan Stanley revealed that many customers are turning absent from balance transfer cards and looking to reward and cashback credit cards Credit Cards | Business Credit Cards | Balance Transfers | Low speed
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Banks waive balance transfer fees - Published:04/12/07
As a figure of fee and rate increases hits the credit card market, it is "more important than ever" that people supermarket around for a good deal, according to WhichInternet shoppers have been advised to use their credit cards for online purchases by shopsafecoukcustomers looking to compare credit cards and transfer an outstanding balance are being alerted to information from Yorkshire Bank and Clydesdale BankThe two lenders have announced that they are waiving balance move fees until the end of February 2007 for clientele who move money onto the Gold MasterCard, which has a zero per cent interest speed for six monthsmore often than not, the banks charge a two per cent fee for balance transfers, so those who take advantage of the offer could typically put aside £50 when moving a £2,500 balanceAfter the certificate's six-month introductory rate is over, the annual percentage rate stands at 149 per cent"With the transfer charge now being waived, our certificate should be particularly appealing to anyone considering this"In related information, Thursday saw the Bank of England take part in an election to increase the national base rate to 525 per.
Read More: Banks Waive Balance Transfer Fees >>Shop Till You Drop - Published:28/11/07
With so much financial doom and gloom suspended the festive season, many retailers have been anticipating the slowest December for yearsWe'll be custody a close eye, and reporting back, on how the Christmas sales are determining in Britain But as the whole sub-prime obsession started Stateside, why not measure what's moving on Main StreetThe day after blessing, known as ‘Black' Friday because it's when stores start creation money for the year, traditionally kicks off the seasonal shopping mix up It's the biggest US retailing daylight hours of the year, and typically accounts for about 5% of all Christmas shoppingAnd despite doubts that the mortgage meltdown and credit chomp would constipate consumers, sales seem to have started better than predictableAmid tales of feverish buying fury, Black Friday's figures were 83% up on last year, said step monitor ShopperTrak147m shoppers visited US stores over Thanksgiving weekend, according to a National sell Federation (NRF) survey which built-in data from Thursday to Saturday and projections for Sunday Although the NRF estimated sales growth at now 35%, which would represent the worst number for five existence, with consumer expenditure per head dropping, also by 35%Both retailers and seller investors are looking to see if sales momentum can be maintained with oil prices seemingly heading for $100/barrel, the deepest housing depression for 16 years, rising mortgage defaults and consumer confidence indicators plunging to almost their lowly since 1992And whether volume growth can be achieved without slashing prices sell observer Mastercard Spending Pulses sees Christmas sales up between 4 and 45% against last year, but comments that two years ago sales were climbing by between 7 and 8% on an annualised basisthe past was christened ‘Cyber' Monday by US retailers to mark the start of the online festival shopping season, when consumers register on at work to look for presents they didn't find in the shops over the blessing weekendWeb shopping watcher ComScore Metrics is forecasting that online sales reached $700m the past, up from $608m last year and the heaviest mesh shopping day on recordYet Cyber Monday may not even prove to be the biggest internet trade day at the start of the pre-Christmas run-in Online reduction offers started from Thanksgiving Day onwards and some Cyber Monday sales in progress on Sunday or will extend until FridayWal-Mart, Best Buy, house Depot, Macy's, Sears, Staples and Toys "R" Us have all put up special website deals to persuade consumers to button from in-store shopping to online orderingWal-Mart said nowadays that compared with a year before, internet sales climbed more than 60% on Black Friday, on which day overall online visits increased 10% from a year previous, according to research firm Nielsen OnlineComScore Metrics saying online consumer purchases rising 22% on Black Friday and 29% on Thanksgiving daylight hours, and is forecasting a 20% increase in internet sales up to Christmas compared with last yearWith the overall busiest online shopping daylight hours usually falling about 10 existence before Christmas, retailers are watching their internet sales information in particular with bated breathNext week could be the busiest shopping time of the day, according to online retailer 247electrical, who has monitored online shopping for the past five yearsThe high street may be turning down but the internet is still drawing in the shoppers, says the corporation, who expect a shopping surge in the sprint up to Christmas with the first Monday and Tuesday in December usually being the solid's busiest days of the year247 also believes that Britons are putting off the predictable ‘belt tightening' until 2008, and expects that over £13bn will be exhausted online in the UK during the last three months of the year, nearly double last year's total of around £7bn© patent 1998-2007, The Motley Fool Limited All rights reserved This fabric is for individual use onlyPlace of Reg: England & Wales Company Reg No: 3736872 VAT Reg No: 735 7818 01 Registered.
Read More: Shop Till You Drop >>0% vs Cashback Credit Cards! - Published:23/09/07
Regular readers will be acquainted with how fond I am of being able to save money - and one of the most excellent ways to do this is to be canny with how you spend it I don't just denote comparing prices and making certain you get the best deals, I also mean the form of money you employ For example should you use debit cards, credit cards or good aged fashioned cashThe most clear method is to simply withdraw money and spend it But although you can often barter a cracking bargain with money, this is rarely the case when it comes to day to day operating cost (for example, that weekly shop at the supermarket) What's more, once cash is exhausted, that's itNow, the monetarily disciplined can throw cashback credit cards into the pot These little beauties in fact give you a percentage of your spend back as cash Put all of your regular expenditure on the card and you could be looking forward to a healthy cheque after a day CoolBut what about 0% cards for new purchases These allow you spend on the card during the 0% era, and as long as you've made your minimum sum religiously each month will accuse you no interest Stash the money you've spent into a far above the ground interest savings account, pay off the balance in full once the 0% period is up and the lovely interest made is all yoursClearly both types of card have their benefits - but which is more lucrative With investments rates higher than they've been in a long occasion is there more to be made from a 0% card Or are cashback cards simply better I decided to contrast and assumed that I would spend £500 per month by means of an extra £200 in November to cover Christmas expenses) Which technique of spending will make me the most cashNow let me quickly stress that only people with a proven evidence of always paying off their full credit card balance on time should even consider by one of the above cards - to make any money you can't afford to be emotional any interest at all If you can't trust yourself, stick to a withdrawal cardAfter careful consideration I plumped for the Capital One Cashback earth MasterCard for my cashback card It pays a whopping 4% cashback for the first three months, and 1% thereafter, making it far more kind than others on the marketMy card of choice here was the Halifax One MasterCard It's got a 12 month 0% era on novel purchases and transferred balances, which is the longest period available at the instant (and also a nice long 59 day interest gratis period)Assuming £500 spend per month, beginning in November, and with an additional £200 being spent in the first month Cashback awarded in the first three months = 4%, and the remaining nine months = 1%detection that anything I spend on the 0% certificate would be stashed into a high interest savings account, I wanted to pick the highest paying, instant right of entry account that needed just £1 to open it that I could findTop of the current Moneyfacts investments table is the Birmingham Midshires Internet Saver, paying a whopping 64%AER certain to at least match base rate until 1 January 2009)So assuming I would spend £500 per month, advantage an extra £200 in the first month, the total gross interest I would accrue after a year would be nearly £219A lower rate taxpayer would efficiently be earning 512%AER after duty, which would equate to just over £175 in interest over the year And a senior rate taxpayer would make nearly £132So there you have it, the 0% card is the obvious winner here, as non-tax payers would be over £100 improved off after a year, and even higher speed taxpayers would be £19 wealthierBut what about bigger spenders If we were to look at the amount of cashback/interest earned after a year on a £1,000 monthly spend motionless presumptuous an extra £200 is spent in November):As you can see, yet again the 0% certificate triumphs, with non taxpayers £207 better off by choosing this cardAnd if you're thoughts of taking out a 0% or cashback credit card, take letter of the following tips:Generally speaking, non-taxpayers can make bigger gains by by a 0% card for new purchases and saving the money exhausted, as opposed to using a cashback certificateBoost your spending total by applying for an additional certificate for your partner because long as you trust each other) and putting all regular expenditure onto the cardsIf you travel frequently with work, try and pay for operating cost with your card and hide the cash received in a high interest explanation until the balance needs to be paid offThere are other advantages to using a credit card, such as the protection obtainable by Section 75 Additionally, the Capital One card is at present offering free travel insurance, if you purchase your trip with the certificateClearly the only way to be a winner is to ensure you either pay off your equilibrium in full each month (in the container of the cashback card) or that you always create the minimimum payment on time, and ensure you stash the cash you spend intended for the 0% card) But as you can see, it is possible to make money by spending money if you're crafty© patent 1998-2007, The Motley Fool Limited All rights reserved This fabric is for personal use onlyPlace of Reg: England & Wales corporation Reg No: 3736872 VAT Reg No: 735 7818.
Read More: 0% Vs Cashback Credit Cards! >>