1. Introduction
As credit cards have become increasingly popular as a method of payment for goods and services, it is important to understand which credit cards are most commonly used by consumers. In the United Kingdom, there are several types of credit cards available, each with their own benefits and drawbacks. This article will examine which credit cards are most commonly used by UK consumers and why.
2. Types of Credit Cards in the UK
There are several types of credit cards available to UK consumers, including balance transfer cards, rewards cards, cashback cards, and low interest rate cards. Balance transfer cards allow consumers to transfer their existing credit card balances to a new card with a lower interest rate or no interest rate for a specified period of time. Rewards cards offer points or other rewards for every pound spent on the card. Cashback cards provide consumers with cash back on their purchases. Low interest rate cards offer a lower interest rate than standard credit cards.
3. Most Used Credit Cards by UK Consumers
According to a survey conducted by MoneySuperMarket, the most commonly used credit card by UK consumers is the Barclaycard, followed by the MBNA Credit Card, and the American Express Platinum Card. The Barclaycard is popular due to its rewards program, which offers cashback on purchases made with the card. The MBNA Credit Card is popular due to its balance transfer offer, which allows consumers to transfer balances from other credit cards to the MBNA card with no interest for a specified period of time. The American Express Platinum Card is popular due to its rewards program, which offers points for every pound spent on the card.
4. Factors Influencing UK Consumers' Choice of Credit Card
Several factors influence UK consumers' choice of credit card, including interest rates, rewards programs, balance transfer offers, and acceptance by merchants. Consumers are more likely to choose a credit card with a low interest rate or a balance transfer offer if they have existing credit card debt. Consumers are also motivated by rewards programs that offer cashback or points for every pound spent on the card. Finally, consumers are more likely to choose a credit card that is widely accepted by merchants.
5. Conclusion
In conclusion, the most commonly used credit cards by UK consumers are the Barclaycard, the MBNA Credit Card, and the American Express Platinum Card. Factors such as interest rates, rewards programs, balance transfer offers, and acceptance by merchants influence UK consumers' choice of credit card. Consumers should carefully consider the benefits and drawbacks of each type of credit card before selecting one that is best suited to their needs and financial situation.
