Financial News October 2007

Why is there a need to compare credit cards?

Credit cards are becoming more and more indispensable in the UK these days. Even small purchases can be paid using a credit card. But what some people don’t realize is that different credit cards suit different lifestyles. If people would compare credit cards, they’d see that some are tailored to suit those who travel a lot and some are for the big spenders. To compare credit cards is more or less a precaution rather than a waste of time. But some people may disagree on that simply because over 1,300 credit cards are available in the United Kingdom. If looked up online, there are lots of major credit cards that are receiving praise and good reviews, which, in a consumer’s point of view, may help when they compare credit cards.

Generally speaking, credit card users in the UK can be classified into three groups: The young professional, the middle-aged credit card user and the loyal cardholder. The young professional would be more likely to compare credit cards and choose the ones with cash rewards, lower interest rates and added benefits. The cards they would be likely to choose are Egg, MBNA, Capital One, Tesco and Goldfish. These savvy cardholders hold more than one credit card and will continue to seek more attractive deals and compare credit cards and their corresponding offers. On the other hand, the middle-aged heavy credit card user will compare credit cards and choose the ones that have the lowest interest rate and low fees. But, they are still open to changing their credit cards if it means more benefits and fewer fees. They are also more open to using charity credit cards. The last category, which is the loyal cardholders, more or less is the heavy spenders that would not compare credit cards and instead, stick to their current account provider.

What these three classifications of people may have in common is that they compare credit cards and eventually choose one, according to their lifestyle. For instance, a traveler is more likely to choose American Express British Airways because it is a standard air miles card that earns pounds for every single pound spent. Another consumer may apply for a card that has added features like the Virgin credit card. Income is also another factor that affects the UK consumers when they compare credit cards. Some credit cards are specifically tailored for college students or those with low incomes. Some people though, choose and compare credit cards, simply because of its popularity. While other consumers use their current credit cards for practical reasons.

In short, there is a need for comparing credit cards because not everyone has the same wants and needs; someone’s need may be another person’s want and vice versa. That’s why a lot of new credit cards with different rewards schemes and rates are emerging; not every niche in the UK’s credit card industry is occupied - yet. But the hard part of the job, to choose which credit card is the best, is up to the consumer.

See The Difference, Compare Credit Cards With Other Cards

Why Compare Credit Cards With Loyalty Cards

Alliance and Leicester Credit Card

APR Credit Card

BT Credit Card

Buy and Fly Mastercard

Cheap Credit Card In The UK

Co Operative Bank Affinity Credit Card

Co Operative Greenpeace Visa

First Trust Bank Credit Card

HSBC Credit Card

Lloyds Air Miles Duo Credit Card