Credit card loyalty 'not worth it'

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Credit card loyalty 'not worth it'

Thu 14th Jan 2010

Consumers should not stay loyal to their banks when it comes to credit cards as they will probably end up with a worse deal, it has been suggested.

Banking specialist David Black of Defaqto indicated that by switching between providers people can take advantage of the kind of products that are generally only available to new customers, noting that rewards are often "stacked up in an introductory way".

"If you have a good credit rating ... you're much better off not being loyal to anyone, because of all the introductory offers around," he remarked.

Mr Black stated that the same advice applies to savings and recommended that when the bonus period on a new account ends, people should look to "jump ship elsewhere".

His comments were made in response to HSBC's January sale, which runs until February 14th.

He warned that just because the bank is offering products that are superior to its standard offers, it does not mean that better deals cannot be found by shopping around.

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