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"Credit card customers don’t have confidence to look for better deal"

By admin | December 6th, 2009 | Credit Cards

There are concerns that many credit card consumers in the UK may not have the confidence to shop around to find a better deal on their credit card, because they are nervous about the impact that this could have on their credit rating and subsequently on their financial futures.

A recent report suggested that consumers were frightened of being turned down if they applied for another card, and were scared of the effect that this would have on their credit.

Part of the problem is that the number of credit card applications that are being turned down by credit card providers has increased since the onset of the global credit crunch, as lenders strive to be more careful about who they lend to and cut down their risks when it comes to handing out credit.

This has sparked fear amongst cardholders that may otherwise have been happy to shop around in order to find a better deal on their credit card.

The managing director of financial comparison site Moneysupermarket.com, Toby Van Der Meer, said that it was a lose lose situation for consumers, as some were missing out on better credit card deals whilst others were damaging their credit by not realising the effects that rejected applications might have on their financial future.

He 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.”

It is estimated that around 46 percent of consumers are not aware that making applications for credit will leave a mark on the credit rating, which means that they might make multiple applications in a short space of time. On the other hand those that do realise the impact of making applications are more likely to avoid searching out a new deal for fear of leaving marks on their credit files.

Tags: best credit cards, Credit Cards, best credit card deals

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