Households could save more than £1,500 in debt interest payments, it has been advised. Analysis from TotallyMoney shows that nearly half of credit card customers could benefit from transferring their balances to different providers.
New data shows 61 per cent of card providers investigated don’t tell customers the range of APRs that might be issued when they receive their new credit card and 39 per cent of balance transfer cards don’t display the full range of promotional lengths that could be issued to customers upon acceptance.
Meanwhile, one in three lenders make an eligibility check mandatory while not providing customers with a pre-application summary box detailing the interest rates and introductory rate durations they may be handed upon acceptance.
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A separate YouGov survey, commissioned by TotallyMoney, found 40 per cent of respondents feel lenders don’t make it clear that they may not receive the advertised credit card interest rate. TotallyMoney CEO Alastair Douglas said: “January’s a great time to get your finances in shape, so you can start the year on the front foot.
“With two banks now offering up to 31 months, you could press pause on interest payments until August 2027.” Mr Douglas emphasised that finding out eligibility “doesn’t take long, and it could save you hundreds if not thousands of pounds”.
“Shop around, and keep your eyes peeled for offers which come with pre-approval, guaranteed credit limits, guaranteed rates, and guaranteed zero per cent offer durations,” he recommended. “That way you’ll know if you’ll be accepted before you apply, and you can be totally sure that you’ll get exactly what was advertised,” he explained.
Andrew Hagger of Moneycomms.co.uk adds: “While eligibility checkers give customers comfort that their application won’t impact their credit record, they have no idea what interest rate or balance transfer durations are available as there is no summary box on the card providers website.
“Customers should be able to see the range of rates and balance transfer durations that each lender offers otherwise they are going in blind.”