Rate tart myths exposed

Credit card companies frequently complain that UK consumers are a nation of “rate tarts” forever switching deals to take advantage of the new best rate or balance transfer deal.

This idea has been dealt a decisive blow by new research, however, which has revealed that the average credit card user actually stays with the same provider for almost ten years.

The 9.6 years that most people spend with their credit card provider is two years longer than they stay in the average job, the Morgan Stanley Credit Card research shows.

Residents of the north east stay with their credit card providers for longer than the average UK resident spends in a marriage ñ 12 years, compared to 11.5 years.

The findings suggest that credit card companies may have been mistaken in targeting people with special introductory best rates and balance transfer deals that expire within a few months.

Overall, the research showed that 89 per cent of credit card users in the UK had no intention of switching cards within the next few months.

“It is clear that cardholders quite rightly expect to be valued beyond an introductory period,” Patrick Muir, marketing director for the Morgan Stanley Credit Card told My Finances.

“With our research showing that UK cardholders are staying with their credit card company for longer than their employer, it is crucial that card companies appreciate customers for the long term,” he added.

© Adfero Ltd

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