The rewards based credit card has become very popular over recent years, particularly amongst those that tend to repay their credit card balances in full each month, which enables them to enjoy clocking up rewards from the credit card provider without having this counteracted with interest payments that they have to make on their borrowing.
One of the most popular rewards based credit cards has been the cash back credit card, where cardholders can earn a percentage back for every pound that they spend on their credit card in the form of purchases.
However, whilst cash back credit cards have proven very popular amongst consumers there is evidence to suggest that the number of cash back credit cards on the market has been declining, giving consumers far less choice when it comes to finding a suitable cash back credit card.
Moreover, industry experts have now claimed that not only has the number of cash back credit cards already declined over recent years but these cards are set to decline further and could soon become very few and far between.
Figures have shown that fewer than one in twenty credit cards now offer cash back facilities for consumers, whereas just six years ago there were around 25 percent of credit cards that offered cash back facilities.
One industry expert said that cash back deals could often work out the most expensive for providers, and with many still trying to repair the damage caused by the credit crisis and the recession providers may start cutting back on the expense of cash back credit cards.
He stated: ‘Credit card providers are facing a number of hits on their established income streams and I regard it as inevitable that credit cards on offer will become less attractive as the providers seek to regain the lost income in other ways and also cut back on the cost of reward schemes.’