CONFUSED.COM COMMENTS ON THE INCREASE OF CREDIT CARD PURCHASES

New figures from the British Banking Association show that the number of credit card purchases increased to 173 million transactions in August, compared to 169 million in July and 158 million in August last year. At the same time, overall balances have reduced year on year, from £64.1 billion in August 2009 to £60.7 billion in August 2010, suggesting that while people are using their credit cards more they aren’t leaving a balance outstanding. Chris Griffiths, head of Credit Cards at Confused.com, commented: “Customers who use their credit card as a means of spending should seriously consider the additional benefits offered by a rewards credit card. With the BBA reporting that the trend for consumers using credit cards simply to transact rather than borrow is continuing, customers should ask themselves ‘am I getting the most from my plastic?’ By paying for goods and services with a card that offers rewards, ahead of one that doesn’t, users can earn air miles, cashback, or shopping points from their spend. “With different cards offering different incentives, customers should consider which type of reward they would get the most benefit from. Some cards offer stronger deals in certain shops, so it may be worth considering where the bulk of the shopping will be done before making a final decision. “Customers should remember that any interest accrued on an outstanding balance and late payment charges may lessen the value of any rewards earned, so a direct debit should be set up to ensure they make at least the minimum repayment each month. Confused.com recently revealed that the UK collectively wastes £150 million each year in late payment charges. To gain the maximum value from rewards cards customers should clear the balance in full each month.” Example reward cards: Ends For further information: Press Office 02920 434393 pressoffice@confused.com