Fool News: Credit Card Switching On The Rise


Updated on 16 December 2008 | 0 Comments

Credit card rate tarts will switch billions between credit cards next year.

Savvy credit card customers across Britain are set to switch £11 billion between credit cards in the next year, according to new research.

The survey conducted by Abbey shows 6.5 million Brits plan to move their balance to a new credit card this coming year, an increase of 5% on last year. With average amounts transferred averaging £1,710, that's a staggering total of £11 billion switching hands between providers.

It seems that flashy spenders and rate tarts (the charming term applied to those who habitually switch credit card providers when their deal is up) dominate the agenda when it comes to credit cards. When asked the features that were important to a switcher, over half (51%) of the 1,051 polled said they change their credit card provider to take advantage of an introductory interest free period on balance transfers.

One in three change credit card providers to take advantage of a cashback offer, and 6% switched because they wanted a card with more `kudos'.

These figures demonstrate how competitive the credit card market is becoming, with customers undeterred by the increasing number of fees levied for transferring balances. However, when choosing a credit card, it is important to realise the dire tricks some credit card companies employ in order to generate money, and learn how to avoid them in order to get the best deals on the market.

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