Credit card customers look for better rates

According to recent data from MoneyExpert.com millions of Brits have switched credit card providers in the past six months in order to try and find better rates of interest and cut back on their outgoings.

Experts state that this shows how hard consumers are trying to reduce their debts and outgoings, with customers trying to reduce debt by finding cards with lower interest rates or by switching to 0% purchase or balance transfer credit cards.

The figures show that 5.7 million consumers have switched credit cards in the past six months.

Close to 400,000 more consumers switched credit card providers in the last half of last year compared to the first half, and the increase may have been partly fuelled by the higher costs that households have had to try and manage, such as increased petrol prices, higher food prices, and increased mortgage repayments. Many have also been hit with higher interest rates on their borrowing due to the increased base rate.

An official from MoneyExpert said that it is likely that there will be further increases in the number of people switching cards over the coming year, stating: “With bills increasing across the board it would not be a surprise to see further rises in credit card switching in the next six months as consumers struggle to cope.”

The reports shows that those most likely to switch are younger people, and over the past six months around 17% of consumers aged between 25 and 34 have switched their credit cards.

The official from MoneyExpert said that it was advisable to switch cards on a regular basis, although he added that this may not necessarily solve debt problems and could prove more difficult due to tighter credit conditions.