Cash back credit cards the most popular

More people are now carrying cash back credit cards and other reward cards than are carrying credit cards offering zero per cent on balance transfers.

New figures from Morgan Stanley show seventeen per cent of UK cardholders have a card with a zero per cent offer while 21 per cent have a credit card that offers cash back.

Additionally, 15 per cent of credit card holders use points-based high street reward credit cards such as Goldfish, and another 15 per cent of UK consumers carry cards giving them points for redemption with a specific partner, such as the Amazon or Sony credit cards.

"We are seeing a shift in the dynamics of the credit card market as cardholders wise up to the long-term benefits of reward cards and turn their backs on short-term offers," said Patrick Muir, of Morgan Stanley.

"We have found that an increasing number of our customers are using their credit cards for everyday purchases such as groceries and petrol to benefit from cash back and rewards, with our average cardholder redeeming £105 every year."

However, some 52 per cent of UK consumers are still carrying cards that do not offer any form of reward.

Reward cards are most popular among older credit card holders, with over-50s more than twice as likely as under-30s to have a reward card with a number of retail partners or a card that collects air miles.

Men are more likely than women to have a cash back credit card, while women are more likely to have a retail reward card. XXX