Why aren't you switching?

Posted in 'Personal Finance' by Richard Catlin

12 March 2009

Our 2009 Banking and Credit Card Survey has revealed that we’re attempting to switch lenders much less often than in previous years – and in many cases it’s through apathy rather than an inability to move.

A staggering 40.7% of current respondents say that the main reason they don’t switch to a new credit card is that they can’t see any benefit in doing so. A further 10.5% say they can’t be bothered, or don’t have time.

In reality, the few minutes it takes to switch to a new card – and you could save a bundle in interest each year by doing so.

Despite the Bank of England cutting interest rates to record-low levels, the average APR on cards has actually increased. Egg recently increased the APR for around 500,000 customers by up to 7% to 16.9% and Capital One has been another high profile lender to bump up rates – now 15.9% for customers with an excellent credit rating, and 34.9% for others.

Saying that, there are still some great deals available if you look, and a potential saving of almost £400 a year is a pretty good incentive to switch.

Roughly 1 in 4 people are concerned that their credit rating might prevent them switching, but by using your free credit score or better still credit report to find out which cards fit your credit rating, you can improve your chances of being accepted first time considerably.

Check your report now