The survey found that, while 31 per cent of cardholders cite interest rates as their top priority when choosing a provider, 29 per cent of consumers cite reward or loyalty schemes as the primary consideration.

Cashback was the most popular reward scheme, tempting 70 per cent of those switching for reward schemes, followed by retail reward cards, which attracted 21 per cent.

Patrick Muir, marketing director of Morgan Stanley consumer banking, said: “With the majority of people paying off their credit cards in full every month, using a credit card with a reward scheme really makes sense.”

But consumers’ preoccupation with rewards schemes, particularly cashback, in preference over low interest rates could indicate short-term thinking.

A recent report from the Debt Counsellors found credit card debt was implicated in 91 per cent of all serious debt problems brought to advisers.

However, Apacs has recently welcomed moves among credit cards lenders to share information about at-risk consumers and encourage responsible borrowing.

To compare credit cards, click here.

©