PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

British Loyalty Comes at High Credit Card Cost

Mercator Advisory Group by Mercator Advisory Group
December 3, 2012
in Analysts Coverage
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

The average British consumer remains loyal to one credit card for around six years, which could cost them up to £420 ($675 USD) more in interest than those who switch cards, according to a recent survey from financial comparison site Money Supermarket. The survey found only 9 percent of consumers intend on changing cards in the next six months versus 66 percent who said they would likely remain with the same credit card.

The high cost of remaining loyal to one card is due to the rising interest rates associated with the cards, which the Bank of England has estimated has risen 1.62 percent since 2006. For example, a customer who has a £2,000 balance on their credit card paying the average rate of 17.32 percent versus taking advantage of leading offers like a 0 percent balance transfer card for 24 months is losing out to the tune of just over £420.

From The Telegraph:

“Apathy certainly reigns with many credit card holders who are happy to languish on high interest rates with their existing provider”, says Kevin Mountford, of MoneySupermarket.com. “Although consumers may not wish to switch credit cards on a regular basis, they should review their card from time to time to assess whether it still suits their needs and financial situation; otherwise they will fail to get the best value.”

With the Christmas shopping season underway, now is the prime opportunity for consumers to switch cards and take advantage of new offers. Overcoming the loyalty barrier, however, will not be easy despite only 26 percent of respondents attributing their loyalty to good customer service. In fact, the loyalty of British consumers might be the result of poor financial education with 22 percent of survey respondents stating that they have never considered changing and another 16 percent are too lazy to change cards. Providing clear information about the benefits of changing cards may be the only way to get consumers to switch cards, and with poor economic prospects across for the United Kingdom and Europe, consumers may finally start listening.

Click here to read more from The Telegraph.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    eCommerce On Social Media, social commerce

    The Rise of Social Commerce and Social Payments

    February 3, 2023
    Electroneum AnyTask; ETN Crypto, sales enablement

    Ethical Financial Selling: The Role of Compliance Technology and Sales Enablement

    February 2, 2023
    direct deposit

    Nacha Launches Campaign to Reach Millennials on the Benefits of Direct Deposit

    February 1, 2023
    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    January 31, 2023
    credit card tumbling

    How to Detect, and Prevent, Credit Card Tumbling

    January 30, 2023
    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    January 27, 2023
    faster payments

    Faster Payments Are Set to Revolutionize Modern Digital Payments

    January 26, 2023
    How AI can Help Manage Payments Risk in 2023

    How AI can Help Manage Payments Risk in 2023

    January 25, 2023

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Equinix report - Dojo Delivers Fast, Reliable and Secure Card Payments to Businesses on Platform Equinix