Shopping around for a credit card 'saves money'

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Shopping around for a credit card 'saves money'

Wed 19th Dec 2007

Customers looking for a new credit card should shop around extensively to make sure they really are getting the best deal available, MoneyExtra.com has advised, and those who fail to do so are effectively throwing money away.

The financial institution made its comments following the announcement from Royal Bank of Scotland (RBS) Group that it will be cutting the interest-free period available to all RBS, NatWest and Mint cardholders, in a move that could heavily impact on customers who try to clear their bill every month.

Robin Amlot, senior editor of MoneyExtra.com, said that such a move could have implications on customers' personal budgets, noting that those who are used to paying off their credit cards on a certain date may not be able to do so two weeks earlier, or whenever payment will now be required.

"If the due date for payment is brought forward, then potentially the credit card company is making more money and certainly they are exposing themselves to less risk," he explained. "Of course it is going to affect people's budgets because it is all a matter of cash flow.

According to research from Credit Action, total consumer credit lending to individuals in October was £222 billion, at an average of £4,678 per adult.

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