Credit card holders unaware of tools to help them manage their finances

Mamta Shanbhag | Supplied

In Scotland, 32 per cent of adults said they use a credit card to collect points, cashback or rewards. Other money management hacks adopted by Scots include using their card to build their credit score (17 per cent), making balance transfers (18 per cent), or opting for an interest-free credit card instead of a loan for large purchases (18 per cent). One in three said they keep separate pots for different savings or spending goals.

According to the study conducted by Opinium Research for Tesco Bank, Scottish adults said they use their main credit card every day (17 per cent), at least once a week (21 per cent), every two or three weeks (16 per cent) and once a month (38 per cent). Some 8 per cent of Scottish adults said they almost never use their credit card.

However, Tesco said that while savvy spenders will use their credit card to improve or carefully manage their financial position, many people are unaware there are different credit cards available that can cater for different needs of consumers. While 68 per cent of Scottish adults are aware that there are different types of credit cards to meet their needs, 32 per cent said they did not know this.

Tesco Bank explained that consumers could therefore be missing out on helpful solutions that would better suit their financial needs.

Mamta Shanbhag, borrow director at Tesco Bank, said: “We’re a nation of savvy spenders. Most of us use clever hacks to manage our money - often without realising it. Whether that’s using a credit card to collect points or cashback, building a stronger credit score, or simply sticking to a budget to balance your spending and outgoings, these everyday habits help us stay financially in control.

“Yet many people still aren’t aware of the wide variety of credit cards available to suit different needs. Debt is a reality for many of us, so making sure it’s working for you is vital. Whatever your goal - spreading the cost of a large purchase, consolidating debt, or managing day-to-day spending - choosing the correct credit card can make a real difference to how effectively you manage your finances.”