The study, carried out by Saga, which provides services tailored towards the over 50s, found that a third of people aged 50 or over chose their existing credit card for the sole reason that it was provided by their bank, despite the fact that they could have got a better deal elsewhere.
As for the other reasons why people over 50 chose their current credit card the survey found, nearly 25 per cent named the freebies, benefits and other perks that came with the card, whilst 11 per cent said that low overseas charges were their top priority.
Only 6 per cent said that they chose their credit card because it was the best deal and could save them money.
According to Saga’s research, which involved questioning around 9,000 people over 50 about their financial behaviour, one third of people said that they forgot or found it “too much hassle” to switch credit cards once the interest-free period on their existing credit card ended. This means that they ended up paying unnecessary interest every month. A personal finance expert at uSwitch.com, Michael Ossei, commented on the results of the survey, saying:
“This is fairly indicative of consumers generally who can sometimes make poor decisions regarding their credit cards.
"It’s vital that people shop around for the best deal for their needs and aren’t lured in by freebies or misplaced loyalty to their bank.
"The fact is that there are some superb deals out there but consumers need to check the small print and also be prepared to move on again once a special offer, such as a 0pc introductory deal, has ended. This way consumers can make their credit cards work harder for them.”
Choosing a new credit card?
Whatever your age, you should always shop around to find the best deals before you go with any one credit card. Carrying out a credit cards comparison doesn’t take very long and it can easily be done online, and it could end up saving you hundreds of pounds in unnecessary interest. The bank you have a current account with may offer you good customer service, but it doesn’t necessarily offer the best credit card deals. Be a savvy consumer and do your research before signing up for any financial product.