Credit cards 'have to be used sensibly'

By Sarah Engle, Tue 24 Aug 2010 - Published in Credit Cards

People should not take out a new credit card just because they are offered the opportunity to do so, it has been suggested.

Recent research from moneysupermarket.com found that renewed competition is being seen in the UK's credit card market, with providers offering longer interest-free promotional periods.

However, the report also noted that the average interest rate applied to the products after these promotions continues to increase and currently sits at 17.32 per cent.

Commenting on the availability of credit cards, Fair Investment Company spokeswoman Rachel Mason said that the products can be a good idea if they are used sensibly.

"The trouble is, many people see these cards as free money and start using them for everyday spending and find they are going over the zero per cent period," she commented.

Ms Mason added that people should only take out a new credit card with a zero per cent introductory offer if they are sure they will be able to pay back any money they owe on it.

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