Compare Credit Cards or Beware

A study released in March shows that consumers with credit cards are failing to compare before they actually apply and that this results in paying more for the card than is necessary.

The report shows that 70 percent of the consumers who have applied for cards in the past 3 years didn’t compare cards sufficiently. 30 percent just went with a card recommended by their bank, and 13 percent compared only three cards before they decided to get one of the cards.

The Office of Fair Trading has been very concerned over the figures resulting from the studies. The simple fact is those who spend the time in comparing cards will save money when they borrow. The OFT believes part of the issue in not comparing the cards is the technical information and financial aspects. Many consumers don’t understand the information they are reading, which makes it hard to compare.

In some cases the consumers are comparing only the basic level of information such as the annual rate, any deal that may be offered, and whether there is a balance transfer option. When comparing credit cards it is just as important to look at the terms and conditions for hidden fees or even blatant fees regarding foreign transactions, late fees and others. This is the part most don’t peruse before applying. Older individuals in the sixty to sixty five range as well as those that make less than 20,000 pounds a year were found less likely to compare cards properly.