Borrowers unsure of their rate
Half of credit card holders do not know the rate they pay on the card they use most often, research from Nationwide has revealed.A survey by the building society also found 33% of respondents incur an interest charge for not repaying their balance in full straight away every month. Men are more likely to repay immediately, though, with 51% ensuring they do this, compared to 39% of women.
The society urged customers to shop around for the best credit card deal, especially since nearly three quarters of people put their Christmas shopping on plastic.
Jeremy Wood, divisional director at Nationwide, said: “With the majority of people using credit cards to make Christmas purchases, and half of them unaware of what interest rate they are incurring, consumers could be paying over the odds this Christmas.”