‘Credit Cards’ News
Credit ‘becomes increasingly expensive’
Posted 2008-06-2
Credit is reportedly becoming more expensive, which could be bad news for anybody relying on their credit cards to pay for day-to-living costs.Research conducted by Moneyfacts.co.uk highlights that since the beginning of the year there have been numerous increases to the rates and charges that people pay for using their credit cards.It notes that in the past five months alone there have been 22 purchase rate increases, 15 cash rate increases and more than 30 increases to fees such as balance transfer fees and cash withdrawal fees.The financial website asserts that credit card providers are tightening their criteria, making it difficult for anyone with a less than perfect credit rating to get a competitive deal."However, for those with an exemplary credit record there are still good deals to be had," it adds.The company advises that when looking to apply for new plastic consumers should think about how they use the card and opt for one which is suitable for their needs.Recent research from the Fair Investment Company highlighted that people are increasingly opting for credit cards which offer financial incentives rather than ones which look attractive or make donations to charity....
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Expert: Store cards aren’t a quick fix
Posted 2008-06-1
Consumers are being warned that store cards do not offer a "quick fix" to their financial problems.According to Credit Choices, increasing numbers of people are opting for store cards over credit cards.The company quotes Debenhams chief executive Rob Templeman as saying that people are relying on store plastic as they are using their credit cards to pay for everyday bills.It adds that over the past six months 1.8 million UK credit card holders have had their credit limit reduced, with thousands having their credit cards taken away from them completely. However, Chris Eagle, commercial manager at Credit Choices, states that borrowing money on a store card is the most expensive way to do so, due to the high interest rates,"Consider applying for and using an adverse credit card before relying on a store card," he adds.Meanwhile, according to a Fair Investment Company poll, zero balance transfers are the most popular credit card feature among consumers....
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Zero per cent balance transfers ‘most important feature for a credit card’
Posted 2008-05-28
Research has suggested that zero per cent interest on balance transfer credit cards are still the most popular type of plastic.A study conducted by the Fair Investment Company highlighted that 21 per cent of respondents listed zero per cent balance transfer as the most important feature in a credit card.Competitive rates and no annual fee were joint second factors that people take into consideration when applying for a new card with 18 per cent of people ranking them as important.Features which offer nothing to the consumer were deemed the least important, with just three per cent of respondents claiming that design played a role in selecting a card.A number of people (11 per cent) said that a card which was free to use abroad would be their top choice.Meanwhile, it was recently reported that Brits are finding it harder to switch financial products such as mortgages and credit cards, with MoneyExpert.com noting a 17 per cent drop in the number of people switching such products....
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Apacs emphasises need for credit card security
Posted 2008-05-28
Apacs, the British payments association, has emphasised the importance of credit card security.A spokesperson for the association said that security measures are something "that people have become more aware of" but added that there are instances were consumers fail to keep their details as secure as they should."This goes back to being mindful of your cards", she said, adding that people should shield their PIN number when making a purchase with their credit card and check their bank statements carefully.She continued to say that people should make their PIN as complex as possible to outwit any would-be fraudsters."It is better not to use the same PIN number, and if you can, familiarise a sequence of codes; a number of a house that you know in combination with a good friends birthday," she advised.According to a Which? survey, one in three Brits have been victims of credit card fraud. ...
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Brides and grooms use loans and credit cards to finance weddings
Posted 2008-05-21
Brides and grooms to be are increasingly relying on loans and credit cards to fund their big day, it has emerged.Research from Fool.co.uk shows that one in ten people would take out a loan to pay for their nuptials or finance the full bash on their credit card, while a further three per cent of those questioned would re-mortgage or take out a second loan to cover the cost.With the research highlighting that the average wedding costs some £4,968, people could find themselves getting into a lot of debt if they rely on such methods to finance their wedding."If you stick all the costs of your wedding on a credit card, you could find your big day is memorable for all the wrong reasons - because you end up paying for it for the rest of your life," states Donna Werbner, financial expert at the money website."Theres no doubt weddings are becoming more expensive, but people seem to lose all sense of proportion when it comes to budgeting."Meanwhile, this follows news from Fool.co.uk that savers are being urged to take advantage of the high-interest savings accounts currently available....
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48% of Brits vulnerable to credit card fraud
Posted 2008-05-20
Brits are leaving themselves vulnerable to credit card fraud by not practising good security, it has emerged.Recent research by Which? shows that approximately half of respondents admit to using the same security number for more than one card, while one in two individuals do not check a website is secure before making an online purchase.A further one in seven people surveyed admitted to writing down their PIN numbers.Some 33 per cent of the 4,119 people questioned by the consumer watchdog revealed that they had been a victim of credit card fraud in the past.Martyn Hocking, editor of Which? ...
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Credit card fraud warning
Posted 2008-05-18
Credit card fraud is likely to rise as a direct result of the credit crunch, an industry expert has claimed.David Kuo, head of personal finance at Fool.co.uk, believes that tightening economic conditions will likely lead to an increase in people providing false information on credit card applications.An increase in the cost of living coupled with high inflation rates have left many peoples finances stretched and looking for ways to plug the gap."What has happened at the moment is that people have found their personal finances being stretched in several directions. First of all they have bigger outgoings and any increase in income that they have had has not been sufficient to cover outgoings," he said.Mr Kuo advised those considering lying to providers in order to secure credit that such a move would not be wise.According to research by the UKs fraud prevention service CIFAS, the number of people telling untruths on credit applications increased by 13 per cent in the first three months of 2008....
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Travellers warned over additional charges abroad
Posted 2008-05-18
A personal finance website has warned people going abroad of the additional charges they face when using credit cards there.Moneyfacts claimed that most card providers apply a charge for using them for retail and cash transactions in foreign countries and that debit cards can also incur additional fees.The site also advised against withdrawing cash on a credit card due to the high and immediate application of interest and suggested that travellers work out a financial plan of action before they leave the country."Most credit cards charge a foreign usage charge, some as much as three per cent for both purchases and cash transactions. This charge is applied each time the card is used and can soon mount up to a significant amount," a spokesperson said.Travellers are advised against making several small withdrawals as they will be charged for every transaction.Moneyfacts is a price comparison site that allows consumers to analyse the costs of products such as mortgages and credit card interest rates....
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Consumers warned over using credit for household expenditure
Posted 2008-05-14
A debt charity has warned people not to become too dependent on credit to cover the cost of bills or other household necessities.Credit Action director Chris Tapp said that the use of borrowed funds such as loans or credit cards makes sense in the short-term but continued use could see people fall into unmanageable levels of debt.He used examples such as utility bills and food as areas where people may need extra funds to cover the rising costs, but urged caution in doing so."It may be a reasonable option in the short-term, but people have to be very careful they dont find themselves overly reliant on credit which is unsustainable in the long run and can lead to people getting in real difficulty," he said.Credit Action was established in 1994 and aims to help people manage their finances better, through a combination of advice and training....
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Internet used more by credit card customers
Posted 2008-05-13
The internet is being increasingly used by credit card customers, to research deals and fill out applications for new cards, according to a recent report.Figures from Global Reviews show that the internet is now the favourite source to look at and manage credit cards, with 64 per cent of customers opting to use it when applying for a new card, reports the Thrifty Scot.An additional 68 per cent use the medium to manage their account, including checking and paying bills.One official has told the website that the quality of these sites is not up to scratch and needed improvement."With so many customers going online, providers wanting to attract these customers need to make sure that their website offers the information customers are looking for. All the online applications we looked at could be significantly improved," he said.He added that as household budgets tighten many people will look around for a better deal.Recent figures from the banking industry revealed that online credit card fraud has increased by 37 per cent since last year, reaching £290.5 million....