Credit card comparison is vital say experts
As more and more of us turn to our credit cards to make ends meet, experts are warning us to ensure that we have assessed what is on offer first to make sure that we get the best deal possible.
Credit card comparison is vital say experts
Shopping around instead of going with a familiar lender could save you hundreds of pounds. ”
Which? the consumer watchdog, recently released reports which showed that over a quarter of all consumers choose a lender because they already hold accounts or have other financial products with the bank or business, rather than because of the merits of the product itself.
Which? pointed out that this means thousands of us are wasting money every year but by shopping around instead of going with a familiar lender we could often save hundreds of pounds.
The Editor of Which? Money, Martyn Hocking emphasised that it’s “more important than ever” especially given the current financial climate, that consumers get good deals.
“The difference,” Hocking says, “between the worst and the best credit cards can be substantial, so it's worth doing your homework."
Rewarding research
Some companies are trying to win over customers by offering extra long interest free periods, such as Virgin, with their new 16 month interest free credit card.
Others are trying to reel in more customers by offering rewards on grocery shopping such as the M&S card which awards 1 point for every pound you spend.
American Express also offers rewards for choosing their card and advises customers to pay household bills with a credit card instead of their debit card (if they pay off their full balance each month) because this way they can take advantage of free cash back on their household expenses.
With this sort of deal consumers could literally make hundreds of pounds worth of rewards every single year.
The comparison culture
Anyone can save money and get a deal which is truly tailored to their needs by using comparison websites to source a good credit card deal.
Another benefit of using a comparison site is that you can often choose to check for deals which apply specifically to your credit type.
There is after all, no point in applying for a card which is aimed at people with a better credit score than yourself, or in applying for a card with a high interest rate aimed at people with a lower score than you, for that matter.
In a study earlier this year, Which? warned that one comparison site isn’t enough.
It emphasized that until you’ve compared deals across the board you won’t have a full picture and could still miss out on a deal which was perfect for you.
"With such an array of financial products to choose from, it can be tempting to turn to a price comparison site to do the legwork for you," Martyn Hocking said, but he stressed the need to “use two or three comparison sites and check directly with providers” before settling on a deal.
Written by ©
