An increasing number of credit card providers are offering potential customers added incentives to take out their products, a new Mintel poll has found.
Research shows that between January and April, 23 per cent of credit card companies offered a cash incentive, compared to just one per cent in the same period of 2007.
"The challenge for issuers will be getting these incentive-driven switchers to change their spending behaviour and become loyal cardholders," acknowledged Andrew Davidson, senior vice-president at Mintel Comperemedia.
Other popular ways of luring in customers were found to be miles and points, as 25 per cent of companies used these throughout the time period in question.
Data from Defaqto shows that the cost of borrowing on credit cards is becoming more expensive, as the average representative APR for credit cards stands at 18.7 per cent, rising from 16.6 per cent since July 2007.