Credit card switching on the up

Six-and-a-half million Brits are set to switch credit card provider this year according to new research from Abbey Credit Cards. That’s up almost 5 per cent from last year. With the average amount transferred standing at £1710, there is over £11 billion on the move.

What features are important to a switcher?

The majority of switchers (51 per cent) change their credit card provider to take advantage of an introductory interest free period on balance transfers - such as Abbey’s 0 per cent offer for 12 months.

One-in-three switch to take advantage of a cashback offer: Abbey offers 5 per cent cashback on all major supermarkets for up to £1,000 of spending on cards until the 31 January 2008.

29 per cent want an interest free period on new balances: Abbey has 0 per cent on new purchases for 3 months.

19 per cent switch to benefit from a lower APR: Abbey has a competitive ongoing purchase rate of 15.9 per cent.

And six per cent wanted a card with more “kudos”.

Roger Lovering, Managing Director of Santander Cards Limited, said: “These figures just show the intense competition in the credit card market. With £11 billion at stake, it’s the credit card with the best deal that wins. Luckily for us, as we’re now part of Santander’s global cards business we’re able to offer such a deal.

“With a 12 month interest free balance transfer period, 5 per cent cashback on all major supermarkets and 3 months interest free on all new purchases, we’re one of the most attractive cards on the market. And the great thing about our card is that because we offer ongoing value we think our customers will stay with us once they have switched.

Abbey’s commitment is to offer its customers ongoing value. It plans to do this through a series of ongoing offers which will run throughout the year. The current offer is 5% cashback on up to £1,000 of spending at major supermarkets.

The Abbey credit card at a glance

5 per cent cashback on spending at major supermarkets up to £1,000 until 31 Jan 2008
0 per cent balance transfer for 12 months, with 2.5 per cent fee (minimum £3)
0 per cent on purchases for 3 months
Low ongoing purchase rate of 15.9 per cent
Daily ATM withdrawal allowance of £300

For customers who are interested in applying for an Abbey credit card, visit abbey.com.