Savvy consumers look for best credit deals

| March 4, 2010 | 1 Comment
Savvy consumers look for best credit deals

Consumers are increasingly taking the time to search out the best deals on personal loans and credit cards.

Financial advice site Moneyfacts said since the onset of the credit crunch, Brits who need to borrow money are shopping around for the lowest interest rates.

Darren Cook, Moneyfacts spokesperson, said: “The Bank base rate being maintained at a historical low for 12 months and the resulting low savings rates is causing people to shop around for the best returns from their hard-worked savings pot.”

Cook made the comments following the launch of the Bank of England’s latest Lending to Individuals report, which shows a significant drop in mortgage approvals, but a rise in consumer credit.

Between December and January, loan approvals for mortgages fell 17%, while approvals for personal loans increased by £500 million.

In the same period credit card lending increased by £200 million.

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  1. Vicky says:

    Consumers should consider 0% interest buy-now-pay-later schemes when deciding on the best credit options. A lot of the costly items people pay for on credit cards can be bought on a pay later plan. So, for example if you wish to take out a loan or a card to buy a new bed, it may be better to select a company that offers the pay later plan as this means paying monthly instalments with no added costs. Buy using this method instead of credit cards it minimises the risk of unnecessary impulse buying a credit card may cause and therefore reduced debt.

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