04:59:34 AM Monday, May 26, 2008
What Are the Credit Card Habits Across the Ocean?
Great Britain and America at first sight seem to be two absolutely different countries with different political systems, history, customs and traditions. But if you look closer, you will find a few things that these countries have in common. First of all, it is the English language, of course. Though the UK and the American versions differ a lot, it is still the same language.
The USA and the UK are both developed countries with high standards of living, high level of scientific and technical progress and diversified, healthy economies. What else the countries share - is the leading positions in the world credit industry. But are Britons' credit card habits are similar to the US credit consumers' ones?
As well as Americans, Britons are active and avid users of credit cards. According to the results of the recent research conducted by the British Banker's Association, about 78% of adult Britons have at least one plastic. Over 3 million of the British own 5 and more credit cards.
The statistics shows that around 35% of British people often use their plastics for everyday needs and purchases. But there are people (about 27%) who prefer cash to credit cards. However, nearly 30% of the UK citizens carry no more than ?10 in cash in their wallets to pay for a bus ticket or for a ride in subway, or to buy a can of soda. About a half of the British withdraw cash just once a week.
But as people get older, they tend to carry more cash in their pockets. Youngsters from 18 to 24, as a rule, have around ?15 in their wallet, while people who are over 50 years old have at least ?45-50 in cash with them. No wonder, for in 1950-1960ies UK credit card deals were not such a widespread payment tool in Great Britain.
As for younger UK generation, they were born in the times when the credit card industry was well-developed in the country. That is why young British people get used to dealing with credit cards faster.
Actually, the situation with credit card use within different age groups in the UK reminds American credit card holders' habits. But this is not the only aspect associated with credit cards that makes the UK credit card industry akin to the US one. British consumers suffer similar credit problems.
The credit crisis affected British card holders as well. They face higher credit card charges and more strict qualifying standards. That is why most British credit consumers do their best to keep their credit score high and maintain good credit history in order to qualify for good credit cards without any problems.
Over 50% of British credit card users pay off their monthly balances in full. Apart from the 35% of Britons that use their plastics for everyday needs, the rest of the credit consumers keep their plastics to make only big purchases they plan out beforehand. This way the British accumulate less credit card debt and less interest.
However, though the English people are known for their punctuality, being prim, prudence and frugality, not all of them manage to stay away from late payment fees and impressive credit card debts.
Balance transfer cards that allow customers shift their balances to plastics with interest-free promotional period are very popular in Great Britain. But their teaser rates usually do not last as long as the intro periods on the US credit cards. Low rate credit cards are also among the top offers searched by people living in the UK.
August 12, 2008
Credit consumers, who want to highlight their financial standing, can find credit products that will fit their interests. There are the so-called status-credit cards on the market. Customers can choose silver, gold, platinum or black credit cards. All of them give certain privileges and that very status to their owners.
What is interesting, you do not even need to have excellent or good credit and really high income to get one of the status credit cards. They are available to bad credit owners as well. Let's take a closer look at Gold credit cards. Learn more about features, options and services that Gold credit cards offer.
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August 01, 2008
Shopping is an integral part of our lives. Some people love it; others cannot stand hanging around stores in the search of necessary items. But still, everybody shop. You wonder what can be so irritating about going to a supermarket, a mall or just a grocery store? Aside from an inborn aversion to the process of shopping, there is one thing that can lay a bad trip on even the most avid shopaholic.
Imagine, you come back home after another shopping spree, unpack your purchases and find out that one of them is defected or damaged. This can really bring you down. And not in all cases you will manage to exchange the item or get your money back. At this point, a credit card deal with consumer protection on credit card purchases is a good choice to make.
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July 08, 2008
The Federal Reserve recently proposed to take measures in order to eliminate unfair credit card practices performed by credit card companies and banks. The Fed also suggested toughening rules and regulations for lenders. Hidden credit card fees, unreasonable interest rate hikes, unfair charges, aggressive anti-delinquency policy and other abusive credit card practices are promised to be banned.
This would definitely bring a relief to credit card holders. But how will creditors tolerate such a policy? Banks and credit companies still trying to make up for the losses caused by credit crisis and trying to survive in the conditions of economic recession, are upset with such Fed's moves, to put it mildly. But whose prayers - lender' or borrowers' - will be heard by the Fed?
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