2.5m Brits to switch credit card deal once interest-free period ends
Brits planning to switch cards once interest-free period on balance transfers and purchases expires
2.5m Brits to switch credit card deal once interest-free period ends”
More than 2.5 million Britons are planning to apply for new credit cards over the next 12 months as the interest-free period on balance transfers and purchases expires, according to new research.
Sainsbury's Finance has published the results of a survey which shows that 1.9 million credit card holders are set to switch providers once the introductory period comes to an end. An additional 867,000 people intend to do this because a similar deal on purchases has ended.
The study also revealed that once a zero per cent balance transfer period expires, the typical APR rises to 18.2 per cent, while the APR on new purchases rises on average to 18 per cent.
Stuart McKeggie, the head of Sainsbury's credit card, said: "In total 7.9 million people told us they plan to take out a new credit card over the next 12 months, and 32 per cent of these said it is because of their interest free periods ending on their existing cards.
"This is still clearly the main reason for taking out a new card, and for those who want to spread their costs, it can be a sensible financial planning option."
Posted by Sarah Nyman
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