Consumers unaware of credit card interest rate

Despite recent research revealing that 42% of consumers are turning to credit cards to stay afloat until payday, it seems that many credit card holders are still unaware of the interest rates they are paying on their borrowing.

To get the best interest rates and rewards on your borrowing you can compare credit cards with Propertywide.

Moneywise’s Consumer Opinion Survey questioned 20,000 people and revealed that almost half (46.5%) had no idea which interest rate was attached to their credit card.

The survey also revealed some of consumers’ main motivations for taking out a credit card, with 14.4% citing a low interest rate as a key criteria for choosing a card, followed by 10.6% of consumers who chose a card because of a particular brand and 13.6% who said that balance transfer offers were key in their final decision.

The single most important factor for consumers choosing to opt for one credit card over another, according to the research, were the rewards on offer.

Findings from the research show that a third of consumers have one credit card, while a further third have two credit cards. 53.9% of the credit card holders surveyed have also had their credit card for five years or more.

A recent survey conducted by Gocompare revealed that Brits are still turning to credit and debit cards as their preferred method of payment, with more than half putting the majority of purchases on plastic.

The research showed that debit cards (54%) and credit cards (30%) dominate purchases valued at between £50.01 and £100 – with just 13% of the consumers surveyed making purchases with cash at this level.

A similar picture was revealed for purchases valued between £30.01 and £50, with the breakdown for payment methods as follows: debit card (54%), credit card (23%) and cash (21%).

To get the best interest rates and rewards on your borrowing you can compare credit cards with Propertywide.

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Posted by: Nicola Severn Categories: Finance Tags: , , Comments Off on Consumers unaware of credit card interest rate

0 Responses to Consumers unaware of credit card interest rate

  1. avatar Melanie Giles says:

    Credit card companies encourage consumers to make low monthly payments so the companies can make money in the form of interest. Before you sign an application for a card, take a hard look.