Consumers challenge their cards
According to a recent report, UK consumers are starting to question the value of credit cards as a means to borrow, demonstrated through a decline in the number of new card applications for May 07.
The number of newly issued cards for the month of May has decreased by approximately 8%. Analysts have suggested, that consumers are finally starting to realise that credit cards are not the most practical form of borrowing, and almost certainly do not offer the best value for money.
It’s no secret that credit card borrowing is expensive, however very few consumers question the validity of their cards as a means to borrow, that is, up until now. The credit card industry pretty much relies on consumer laziness as a means to justify its existence, coupled with the only real benefit of being able to borrow when you need it. However, if the consumer intends to make a major purchase, it is unanimously agreed that a loan is by far the most sensible option
A separate study has revealed that less than ½ of all credit card borrowers have searched for a better deal, with many still using the same card they did 5 years ago. Additionally, over 20% of active credit card users are disgruntled with their card for a number of reasons, the most common of which being interest rates.
