Credit cards: Let's switch again
UK £11bn credit card switch
Tuesday, 16 Oct 2007 11:00
Britons are switching £11 billion between credit cards.
New research from Abbey reveals 6.5 million consumers will transfer balances in the coming 12 months - a five per cent increase - despite a fall in the number of interest-free offers on the market.
Brits are most likely to switch to credit cards offering long interest free balances or cashback facilities.
The average balance transfer is £1,710.
"These figures just show the intense competition in the credit card market. With £11 billion at stake, it's the credit card with the best deal that wins," said Roger Lovering, managing director of Santander Cards.
A total of 51 per cent of credit card switchers are doing so to take advantage of interest free offers on balance transfers, while a third opt for cashback offers.
Some 29 per cent of consumers switch to 0% interest in new balances and a fifth opt for low interest rates.
For six per cent of those changing credit card providers, financial gains are not the motivating force, but they are looking for plastic with "more kudos".