Interest rates ignored in credit card selection

British borrowers are more likely to look at brand image than interest rates when choosing a credit card.

10:00 15 November 2004

British borrowers are more likely to look at brand image than interest rates when choosing a credit card.

In a new survey 16 per cent of consumers admitted they opted for their credit card based on the brand's image.

A further 15 per cent of respondents picked their card because of its attractive or "stylish" design and 14 per cent said their decision was swayed by advertising and marketing hype.

Just 10 per cent of those questioned in the survey for the uSwitch.com website chose their credit card for its low APR and only 8 per cent were influenced by the fact their card had the longest 0 per cent introductory period.

"We actually appear to be a nation of 'style tarts' rather than 'rate tarts' when it comes to credit cards," said Paul Schofield, head of personal finance at uSwitch.com.

"However, we urge consumers to ensure that they consider all areas when choosing a credit card."

"While our results reveal that consumers are swayed by image and advertising, APR is probably of paramount importance," he added.

"The credit card sector can be incredibly complex, but one way to make sense of it all is to use a facility such as an online comparison site which enables you to compare all the products."