Many people lie to get their hands on a credit card
According to a recent report a worrying number of consumers in the UK stretch the truth or even lie outright in order to try and get their hands on a credit card and other forms of finance.
The data comes from the UK’s fraud prevention service, CIFAS, and shows that the number of people that lie about certain things on their applications for credit cards and finance is quite worrying.
Credit cards have already been blamed for adding significantly to the UK’s personal debt mountain, and many of those that are suffering financial difficulties are trying to deal with credit card debt.
Telling lies in order to get a credit card puts consumers at the risk of quickly finding that they cannot accord repayments, or puts them at risk of being rejected right away once their lies are discovered, and having their credit ruined.
Lying about a credit rating was highlighted as one of the most common on applications for credit cards and finances, according to the data from CIFAS. Many people lie about their credit history if it is a bad one in the hope that they can fool the lender and get the finance that they need, but according to officials many do not realise that the lender will carry out checks on the credit file so will be able to verify this information.
Another common area about which lies were fold involved how long the applicant had been at their current address. The figures suggested that many of those that had been at their address for a relatively short period tended to exaggerate these timescales in order to try and improve their chances of getting credit.
Customer failing to collect rewards on credit cards
Many people in the UK that have credit cards decide to opt for some form of rewards based credit card in order to benefit from a range of rewards that can be accrued from simply using the card, such as reward points, discounts vouchers, air miles, and more.
These cards have proven popular because of the benefits offered, particularly amongst consumers that tend to repay their balance in full each month and therefore do not have to worry about interest charges.
However, despite consumers’ enthusiasm for this type of rewards based credit card recent research carried out by MoneyExpert.com has shown that many customers are failing to actually cash in on their rewards.
In fact, the research indicated that a whopping 83% of consumers have failed to collect over four billion pounds worth of rewards, such as air miles, gift vouchers, and loyalty points. The research showed that around 57% of consumers had accrued an average £42 worth of rewards points on their cards, and around 20% had air miles amounting to over £160.
An official from MoneyExpert stated: “It’s fairly typical for a company to offer customers an incentive to join their club. Whether it’s reward points in a supermarket or air miles for choosing a specific airline, loyalty is meant to pay. However our research shows that while these schemes are a clear incentive to buyers, we as customers do not fulfill our end of the bargain and spend our hard earned rewards. Which means providers have won twice by getting your business and then not having to reward your loyalty as agreed.”
He added: “If this shows anything it’s that there are very few reward schemes that genuinely work. Perhaps the best bet is to stick to a cashback credit card, where at least you are automatically rewarded in pounds and pence.”
0% interest on transfer and purchases with M&S
M&S Money is offering customers a tempting credit card deal, by offering six months worth of 0% interest on both balance transfers and purchases, enabling cardholders to enjoy the convenience, ease, and flexibility of the card without having to worry about paying any interest on the transferred or purchase balance. The 0% offer comes into play with immediate effect, according to a recent report.
The M&S credit card will offer six months worth of interest free credit on purchases from the date of account opening, and also six months worth of interest free credit on balances transferred within six months of the account being opened.
There is a 2% balance transfer fee that applies on the card, with a minimum fee of £5. In addition to enjoying interest free credit customers will also be able to earn M&S rewards points whenever they use the card, which can then be concerted to vouchers to spend in-store. The credit card has a typical standard variable rate of 18.9%.
M&S has also recently launched another offer for consumers that are looking for finance and meet the eligibility criteria. This is in the form of cash back on personal loans. The retail giant, which has branched out into financial services like many other retail giants over recent years, is offering a 25% cash back deal on personal loans that are taken out between April 1st and June 3rd.
Whilst the credit card deal is likely to prove popular amongst credit card users, consumers are also reminded that it is important to compare other credit card from a range of providers to check whether there is a more suitable or affordable deal on another credit card.