Cards used for loans more and more, firm finds
Credit card loans are on the up, new research claims to show.
According to a study from financial website Moneysupermarket.com, demand for zero per cent or low-interest balance transfers is high among consumers.
This means that many are using their card borrowing as a sort of personal loan - and are doing so because the attractive introductory interest rates offered by card providers are making it easy to pay off.
Head of credit cards at the website, Steve Willey, added: "Approximately 35 per cent of credit cards issued are taken for borrowing, which normally extends way over the initial zero per cent balance transfer period.
"As such, they are viewed as low-rate pseudo loans."
Future trends for the credit card industry were also detected by the financial expert.
"The next significant change for the industry will be the way we pay for everyday items with Visa Paywave and MasterCard Paypass coming to the fore," Mr Willey said.
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