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"Many credit card consumers will not shop around"

By admin | November 20th, 2009 | Credit Cards

Although most people are aware that the interest rates, terms, and benefits of credit cards can vary from provider to provider and from card to card it has been revealed that many credit card customers are still afraid to shop around for the best deal.

One of the main factors affecting their confidence when it comes to shopping around is the fear of affecting their credit rating and score by making applications or being rejected for credit cards, which would then knock down their credit score.

The global credit crunch and the recession have resulted in an increase in the number of credit card applications that are being turned down in the UK, with credit card providers turning down more and more applications.

As a result of this many consumers have become fearful of shopping around for the best credit card deals because they do not want to risk damaging their credit rating.

One industry official said: “This means they are not necessarily getting the best deals, while those who don’t understand this are damaging their credit files, which prevents them from accessing the best deals.”

Officials have now said that they want the government to put an end to this situation where consumers are too scared to try and find the best deals, particularly in the current climate where many people are stuck with poor deals on their credit cards.

Whilst consumers are able to shop around in terms of checking comparison sites and websites to see which providers are offering the best deals, actually making an application for the cards can result in a black mark being left on the credit report.

Tags: shop around, credit card users

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