<< back to previous page
Students and graduates warned to choose 'right credit card'
Friday, 09 November 2007
Life after graduation
Consumer advice body Which? has urged students and graduates with limited means to take care and consideration in picking the credit card that best suits their needs, noting that it can be advantageous to have different cards for different uses.
Martyn Saville, a spokesman for the organisation, also advised students looking for credit that store cards are generally a more expensive way to pay for goods, charging more in terms of interest than most credit cards.
"Credit card companies charge interest and allocate payments in different ways. It is essential to choose a credit card that suits your needs and it is often useful to have different cards for different purposes," he said.
"Credit card providers must provide a summary box which includes information such as the card's APR, fees, charges and the allocation of payments. Which? produces Best Buys for a variety of spending and repayment patterns, taking into account our unique research."
Research from MoneyExpert.com has revealed that payment on more than 4.1 million credit card bills was missed in the first half of 2007. That equates to 700,000 missed payments a month, each generally carrying a £12 charge.
In September 2007, the personal finance website calculated that total credit card debt was equal to £54.1 billion.