People who repay their credit card balance in full every month could benefit from a number of different options when it comes to comparing deals, it has emerged.
There are a number of borrowers who pay back their balance at the end of each month, according to moneyfacts.co.uk.
Consequently, while those who do not do this may look for benefits such as low interest on balances and balance transfers, those who do can experience benefits such as cash-back deals, interest-free days and loyalty schemes.
“These additional features would probably appeal to the majority of consumers,” said Andy Britchford, personal finance analyst for moneyfacts.co.uk.
“But for those holding a balance the number one priority must be to secure the cheapest deal in terms of interest rate.”
However, related research from the Debt Counsellors found that borrowing on credit cards – which stood at £55.4 billion in August 2006 – is the cause of many serious debt problems in the UK.
Of this, the proportion found to be collecting interest was 74.6 per cent.
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