Frequent Credit Card Use by Wealthy
A new report reveals those who use their credit card more often are more likely to be in good financial health.
If you use your credit card regularly compare credit card offers online to ensure you get the best deal currently on the market.
The research by YouGov SixthSense showed heavy card use is associated with wealth and stability as opposed to those who are in financial difficulty and relying on credit.
The average amount owed per cardholder is £2,881 for those who owe money on their credit card, whereas those who said they never use their cards anymore still owe on average £3,437.
“Those with greater means can afford to use their credit cards as if they were debit cards,” said James McCoy, YouGov SixthSense research director.
“The card can be used day in, day out for all types of purchases and payments can be made in time without having to incur charges or high interest payments.”
The report identified 50 percent of UK cardholders who use their cards at least once a week say they are financially healthy and 40 percent say they are financially secure.
Furthermore, 20 percent of consumers who use their credit cards less frequently, either once a quarter or less, admitted to being in slight financial trouble, and those who never use it said their financial situation was serious and were missing bills and loan payments.
Compare Credit Cards
It is worthwhile comparing the market for a suitable credit card offer whether you use it regularly or not to help boost your credit rating and prevent high interest rates landing you in debt.
If you are currently struggling with your finances it is recommended you investigate prepaid credit cards as an alternative.
Anyone can purchase a prepaid credit card for a small fee to help budget their monthly income, this prevents overspending and the user cannot get into debt using it as the card does not allow the user to spend more than they preloaded onto it.