Lenders fighting for customers

Credit card companies are offering a great number of incentives in order to compete for customers, one expert has claimed, but consumers should be wary of the deals on offer.

Susan Hannums, saving manager for AWD Chase de Vere, advised people to be “really sensible” when it comes to credit card deals, such as free flights.

“There is so much money to be made from the bank’s point of view, so as long as there’s that money to be made there will always be banks fighting for the business, and they’ll do whatever they need to do to get the business,” Ms Hannums remarked.

However, the interest rate on such cards may mean the holder ultimately pays for the incentive offered by their credit card provider, she added, arguing that the sector is “hugely profitable” for banks.

Apacs, the UK payments association, recently reported that credit card spending last year reached £126 billion ñ twice the figure recorded in 1996.

© Adfero Ltd

Leave a Reply

Your email address will not be published. Required fields are marked *