Credit card customers urged to plan ahead for Christmas

October 24, 2006

Consumers who are planning to fund their Christmas expenses this year by spending on a credit card have been advised to plan in advance if they are hoping to apply for a competitive product and also receive it in time.

According to moneysupermarket.com, zero per cent offers on purchases could save consumers almost £2 billion in interest payments in 2007.

Despite this, only 11 per cent of customers apply for a card offering zero per cent when they take out a credit card.

"Opting for a zero per cent deal means that consumers using plastic for their Christmas spending pay nothing more than the cost of their goods – they just need to make sure the balance is paid off before the introductory offer ends," said Robert Kenley, head of credit cards at moneysupermarket.com.

Consumers also need to be sure that they apply for a new product in good time, as moneysupermarket.com points out that providers typically take up to four weeks to fully process an application and the demand they will be receiving at Christmas could lead to them taking even longer.

"Taking the time to shop around now will ensure people have the right card in their wallet when they hit the shops," Mr Kenley stated.