Credit card customers need to compare cards

A recent report has suggested that consumers in the UK may be spending a small fortune unnecessarily on credit cards simply because they are failing to make comparisons and are therefore often ending up with a raw deal on their credit cards.

The report shows that close to 70% of consumers that have applied for a credit card in the past three years did not make sufficient comparisons before deciding upon a card. Over 30% simply went with a credit card that had been recommended by their bank, and around 13% only compared around three cards before making a decision.

The Office of Fair Trading has expressed concern over these figures stating that those failing to compare cards properly could be dramatically affecting their chances of getting a good deal on their borrowing.

Officials from the OFT have stated that part of the problem when it comes to comparing credit cards could be the fact that consumers find the technical and financial jargon on credit cards confusing and difficult to understand, and this could be putting them off comparing cards.

In a breakdown of the figures the OFT said that there were a number of consumer groups that were more likely to fail to carry out comparisons when choosing a credit card.

This included those with only one credit card, those aged sixty five or over, those with limited or no access to the Internet, and those that felt that they were not very knowledgeable about financial matters. Those on an income of under £20,000 were also found to be less likely to compare credit cards.