75% of young people rarely or never switch card provider

1 Nov, 2016

The UK’s youngest and oldest adults are least likely to switch financial providers, including credit cards, loans and mortgages. New research from Experian shows that two thirds (63%) of British adults  ‘rarely’ or ‘never’ change credit card provider, in spite of it being easier than ever to switch financial products.  The research also sheds new light on how people prefer to bank and their attitude to loans and mortgages.

James Jones from Experian said, “Millions of people are throwing away money and paying way over the odds on their borrowing. Most are already managing their accounts online and might not understand that it can take literally minutes to get a much better deal in just a matter of a few clicks. People with a strong credit history can qualify for highly competitive rates on credit cards, loans and mortgages. Now that the Experian Credit Score is available free, for everyone, forever, there really is no excuse not to shop around.”

Credit Cards

While 82% of people say they manage their credit cards online, 63% of Britons rarely or never change credit card provider. It appears that the groups who generally have the lowest levels of income in the country tend to be the least likely to switch to get better deals that could save them significant sums. A massive 75% of 18 to 24-year-olds and 77% of over-65s say they rarely or never change credit card provider.

“It’s young adults  who could benefit most by building good habits early and reviewing their financial accounts regularly, and switching when better deals become available. This could save them huge amounts in the long run. Using services like our new free CreditMatcher tool is a really easy way to see which credit card is suited to their needs and individual financial circumstances. Right now, 75% of young people are missing out on the best deals when it comes to credit cards.”

James’ Tips: Think about your priorities and why you want a new card when shopping around.

  • Rewards cards can be a good option for people who travel regularly or spend a significant amount on their weekly shop
  • 0% balance transfer cards allow you to transfer existing debt to a card where you pay no interest for a set period of time
  • Many providers offer 0% introductory offers on purchases, which can be helpful if you’re planning to spread the cost of a big purchase over a number of months
  • If you occasionally carry over your balance to the next month, then a competitive standard APR might be worth investigating