Right credit card 'depends on personal circumstances'
Published On 1 July 2007
It is vital that consumers looking to apply for new credit cards take the time to consider their personal circumstances and look for the most appropriate deal, an expert has said.Earlier this week, the Office of Fair Trading (OFT) launched an investigation into how clearly credit card companies market their products.
OFT research found that over 50 per cent of credit card customers did not compare their existing deal with others currently on the market.
However, Stephen Rose, director of the Debt Advice Bureau, explained that the best credit card deal would always depend on an individual's circumstances.
"If they have an existing balance on the credit card the type of card they are going to be shopping around for is the one with the best balance transfer deal," he commented.
"Whereas, if they are using the card for purchases and have no debt, they are going to go for a card that has zero per cent on purchases for a year."
Mr Rose added that there were several online comparison services which made it easy for consumers to compare credit card deals.
"It doesn't take a great deal of time - 15 to 20 minutes maybe - and if you're talking about £5,000 worth of debt that saves you five percentage points per annum for five years, that adds up to £1,250, which is not a bad saving for 20 minutes of work."
Recent research showed that credit card borrowing in the UK continued to fall in May.
