Credit card holders are missing out on valuable rewards by not redeeming points that are collected when they spend on their cards, according to new research.

Loyal credit card customers can take advantage of rewards including cashback, points that convert to money off purchases or airmiles but only one third (32 per cent) have redeemed points or miles, or have been paid cashback in last three months.

Research from Morgan Stanley Consumer Banking Group also revealed disparities in the average value and frequency of redemption between different reward-based credit cards.

Airmiles offers the best value with the average redemption over the last three months amounting to £157 per person but they are also the least redeemed, with only nine per cent claiming their reward.

Goldfish is the most frequently redeemed reward with 46 per cent claiming rewards over the last three months, although the average value was £64.

Patrick Muir, marketing director for Morgan Stanley Consumer Banking, said: "Credit card reward schemes can be a great way for cardholders to be rewarded for everyday spending, but there is no point in having one if customers do not redeem their points.

"Our research tells us that those wanting a variety of retailers at which they can redeem their loyalty points would be best placed taking out a Goldfish card, whilst those who want to be able to use their rewards anywhere would be wise to consider a cashback credit card."