Unsuitable credit choices could rack up £120m bill
Many UK consumers have failed to shop around for the right credit card, resulting in a potential interest bill of £120m, research from moneysupermarket.com has shown.
The price comparison site found more than 3 million of the UK’s 31.6 million credit card holders may have picked the wrong card for their needs. Almost half (48%) of cardholders claim to use their card for purchases but only 11% chose their card because it offered a low interest rate for this purchase. In addition, although only 6% used their card to transfer a balance, 15% looked for a card offering the best balance transfer deal.
Rob Kenley, head of credit cards at moneysupermarket.com, said: “Don’t be taken in by the headline rates on offer because the cheapest deals do not automatically signal that the card is right for you. As always, when it comes to financial products a bit of planning and research will help you minimise the risks of paying more than you need to.”
The figures also reveal almost half (44%) of Brits do not shop around for their credit card – either opting for the one offered to them by their bank (33%) or responding to a direct mail offer (10%).