Nationwide: moneysupermarket.com credit card survey

Jeremy Wood, director for credit cards and banking at Nationwide, comments on today's moneysupermarket.com credit card survey: “I am pleased moneysupermarket.com has recognised the importance and impact of the order of payments credit card providers use. An adverse allocation of payments costs consumers £500 million in unnecessary interest charges each year - charges that customers can ill afford to pay.

"It's essential consumers understand the differences between the credit cards available when it comes to making a decision about which card to choose. Unfortunately, consumers do not always understand the impact an adverse order of payments can have and we look to the industry to be more upfront and honest about how this practice can make the cost of borrowing more expensive. At Nationwide, we ensure our customers' credit card payments are applied to the most expensive debt first.

"Many credit card providers use low introductory rates to lure people into opening an account. These offers can look very appealing, but when you scratch beneath the surface you discover that credit card holders often don't receive the full benefit of these low rates."