Compare Credit Cards with CardSmart

David Kuo, director of The MotleyFool.co.uk, said that penalising potential credit card users for shopping around is like punishing someone for browsing round the shops and then charging them a higher price when they come back to you afterwards.

He was responding to news that a Treasury Committee of MPs met last week to question the heads of credit reference agencies and other experts about how searches affect deals offered to credit card customers.

Chairman of the committee John McFall said the hearing made it clear there is a problem with the current system that needs to be looked into.

Mr Kuo agreed with this statement, calling the present system "very unfair".

He said that all financial institutions such as credit agencies are currently obliged to do is advertise a typical rate for those looking to borrow money.

However, only around two-thirds of those who apply are offered the typical rate, he said.

"That then leaves another third who will not get the typical rate and will get something worse than that," Mr Kuo added.

Written by ©

Credit Cards	0% Balance Transfers	0% Purchases	APR Representative (Variable)
	Tesco ClubCard Credit Card
	9 months	15 months	16.9%
** 16.9% APR representative (variable). Based on a credit limit of 1200 and purchase rate 16.9% p.a(variable). **
	Virgin Credit Card
	20 months	3 months	16.8%
** 16.8% APR representative (variable). Based on a credit limit of 1200 and purchase rate 16.8% p.a(variable). **
	Barclaycard Platinum with BT
	22 months	3 months	17.5%
** 17.5% APR representative (variable). Based on a credit limit of 1200 and purchase rate 17.5% p.a(variable). **
Compare More Credit Cards...