Many credit card users are missing out on the most competitive spending or 0% interest deals because they are too lazy to switch providers.
Credit card users languish on high interest rates because they ‘can’t be bothered’ to switch to a better deal, suggests a new report.
Around 13 million people are struck with apathy that keeps them loyal to the same provider for an average of six years, according to research by comparison site Moneysupermarket.com.
Brits languish on high interest rates
Only one in ten card holders plan to switch cards in the next six months, despite January being an apt time to get finances in order for the coming year, while two-thirds of people said they were unlikely to change cards.
Laziness with switching only grows over time. As the longer a person has their credit card the less likely they become to search for a better deal. Only 4% of those who have had a card for ten to 15 years are likely to switch in six months’ time.
On the other hand, more than a quarter of people who have had their current credit card for only a year will move in the same period of time.
More competitive cards
Kevin Mountford, head of banking at MoneySupermarket.com, said: “The tempting offers which will have initially swayed people to that credit card are likely to have changed or expired over time.
“Bank of England figures show the average credit card rate in the market is 17.32 per cent, up from 15.7% in November 2006 so anyone holding a credit card for a longer period of time is certainly paying over the odds.”
Even those who pay off the balance each month to avoid paying interest on spending, risk missing out on some of the best rewards if they stay using the same card.
In recent weeks the market for cashback and rewards has become ever more competitive. For instance, Tesco clubcard credit card users can earn extra points on spending and the supermarket recently announced that customers could double the value of points vouchers to spend in store.