More than half of credit card customers avoid interest
According to recent research by fairinvestment.co.uk more than 50% of credit card customers in the UK have been able to avoid paying costly interest rate charges on their credit card balances by simply paying off their balance in full each month.
Experts have stated that customers that use their credit cards in this way can not only avoid paying expensive rates of interest on their borrowing, but can also enjoy making a little back from the credit card firm.
Many customers that repay their balance in full each month have rewards based credit cards such as air miles cards, cash back cards, retail rewards cards, travel rewards cards, and more.
By having rewards based credit cards these consumers are able to accrue rewards by spending on their card, yet they are charged no interest for spending on the card because they are repaying the balance in full each month.
An official involved with the study stated: “With the encroaching credit crunch being felt by consumers through the price of credit and the bills that come through their front door, it is uplifting to see that more than half of credit card customers can still afford to clear their balance each month and are not relying on their credit card for day-to-day essentials, getting further and further into debt.”
None of the consumers that were polled said that they had consolidated their credit card debts with a loan.
The official from fairinvestment.co.uk said: “The fact that we had no respondents who said that they took out a personal loan to pay off their credit card balance is a strong indication that the credit crunch is having an affect on the availability of credit to consumers, just as it is for people trying to get a good mortgage deal.”
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