Credit card users waste £2bn

By HELEN MONKS
Updated:

 

A SURPRISING 65% of credit card borrowers don't know what interest rate they are paying and this ignorance costs them £2bn a year, says Virgin, which this week launched its own credit card.

Virgin says that 70% of cardholders have credit cards with the Big Four banks - Lloyds TSB, NatWest, HSBC and Barclays - even though only 18% of those consumers believe these banks offer the best deals.

Though borrowers could easily switch to lower rates, 51% of cardholders still have the first credit card they were issued with and Virgin's study of 700 cardholders shows 71% use a Big Four card more than any other.

Virgin claims up to 10m UK credit card customers could save themselves up to £2bn this year by switching debt away from bank credit cards that typically charge 17%, to a cheaper one such as Virgin's, which offers four set-up choices, each with their own interest rate, fee option, range of benefits and reward points.

The rates range from 10.9% to 15.8% and balance transfers from 3.9% to 10.9%.

You can apply for the Virgin credit card by clicking here or by calling 0800 056 5667.

• Compare all the best credit card deals by clicking here

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