British consumers are failing to take advantage of billions of pounds of potential credit card rewards by not using plastic to fund their everyday purchases.  That’s the conclusion of a new study which has encouraged credit card holders to shop around for the best rewards credit cards in order to benefit from cashback, vouchers or Air Miles.

Almost two thirds of Brits failing to benefit from credit card rewards

The study by American Express found that Brits are failing to benefit from £3.6 billion in credit card rewards each year by failing to use plastic to pay for basic goods and services.  By using the leading rewards credit cards for everyday shopping such as groceries or fuel, British consumers could take advantage of over a hundred pounds worth of rewards every year.

The research found that by using other methods of paying for goods and services, 63 per cent of Brits are failing to take advantage of the perks offered by rewards credit cards.

Julie Hay, vice president at American Express, said: “It is time UK consumers ended their unrequited love affair with passive plastic.  Why continue to make purchases on debit and credit cards that give nothing back for your spending?

“At a time when every penny counts, we’re urging consumers to make the cards in their wallets work harder for them.”

Ensure you repay the balance every month

Rewards credit cards offer vouchers, cash back or other rewards based on the amount that you spend on your card.  For example, the American Express Platinum Cashback card offers an introductory 5 per cent cashback for three years on spends up to £2,000 a year, and standard rates of between 0.5 per cent and 1.25 per cent depending on your card spending.

However, it’s important to ensure that you pay off your credit card balance every month.  If you don’t, the interest you pay on your balance is likely to outweigh the benefits of any credit card rewards you might receive.