- Use annual credit card statement to shop around for the best offer for your needs
- 40 per cent of Brits seek a card with a good balance transfer offer
- A worrying one in ten just use the credit card offered by their bank
The annual credit card statements, announced this week, will highlight spending over the past twelve months, the amount repaid and any interest and fees charged during this period. In addition, the card statement also shows transactions by type, giving consumers greater insight into their spending habits.
With two-thirds of credit cards in the market bearing interest* UK consumers should check they aren't paying over the odds and if necessary switch to a card which is more suitable. For example, for someone who has a £2,000 balance sitting on a card paying an average rate of 17.31 per cent**, switching to a market leading zero per cent balance transfer credit card with Barclaycard for 22 months could save them a substantial £465.05. For those who use their card for regular purchases, and don't pay the card balance off in full every month, switching to a zero per cent purchase card may be beneficial. For card users who pay their balance off in full every month, then a reward or cashback card may be more suitable such as the market leading American Express Platinum Cashback card which pays 5 per cent cashback for the first 3 months and up to 2.5 per cent thereafter.
MoneySupermarket polled its users on what they look for when shopping for a credit card***. Two fifths (40 per cent) said they seek a card with a good balance transfer offer, followed by nearly a quarter (23 per cent) who are after a long zero per cent period on new purchases. However, only seven per cent said a competitive APR was the most important thing they look for, and a worrying ten per cent just use the card they were given by their bank without checking if it's the right one for their needs.
Kevin Mountford, head of banking at MoneySupermarket.com said: "The introduction of annual credit card statements is a welcome move for consumers, with it giving them the opportunity to have a holistic view of their spending and repayment habits over the previous twelve months. Understanding how you spend on your card gives you the perfect opportunity to switch to a card that suits your needs, so you can make the most of your finances and ensure you're not paying over the odds."
MoneySupermarket has a SmartSearch credit profiling tool to help those looking for the best credit card deals for their circumstances. The tool matches the customer's credit profile against the card they are most likely to be accepted for, but doesn't leave a footprint on their credit file.
Notes to Editors:
* Source: (BBA- credit card market statement, 1st March 2012)
** Bank of England Average Credit Card Data Analysis, Feb 2012
*** MoneySupermarket poll
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