UK, 4 December 2019: Experian is introducing “Credit Limits” for balance transfer cards, a new, industry-first service so consumers can make more informed credit choices.
Currently, people looking to switch their existing debt to a balance transfer card do not know whether they’ll be able to transfer the amount they would like to until they complete the application.
That means many consumers have taken out new credit that doesn’t cover their existing debt. Yet making an application for credit leaves a mark on their credit report, regardless of whether they go on to use the card, which could impact their chances of finding the right credit for their needs.
Experian’s new service means people searching for balance transfer cards will know whether they will be able to transfer the amount they need before applying.
This transformation to the way people can search for credit reflects Experian’s aim to boost transparency in the credit market and help consumers find the product that is right for them.
Amir Goshtai, Managing Director of Experian Marketplace, said: “Currently, applying for credit cards can be a bit of a lottery as people don’t know if they’ll get the credit limit they need. But it doesn’t need to be that way so we are making it more transparent for consumers.
“We believe people should know if they’ll be able to transfer their balance before they apply which will give them confidence. Managing money is daunting enough already and this change will help people find the right product for them much more easily.”
People can save money by transferring to a balance transfer card. Nearly a fifth (19%) of credit card holders are incurring interest on their current card, with just 10% transferring a balance in the past year to avoid paying interest1.
Typical cardholders who don’t switch can be incurring interest of £4682 on their credit card balance. People can cut their costs by transferring their existing credit card balance to a 0% balance transfer card.
Vanquis is one of the first providers to guarantee people using Experian’s new comparison service that their balance transfer request will be accepted.
Amir Goshtai, continued: “We are proud to be leading the way to make credit cards simpler and more transparent for people. We continue to work with our other partners to expand the service further in the coming months.”
The introduction of Experian’s new service means consumers can not only see whether they will get the credit limit they need, but also the actual rate they will get and their chances of being approved for credit before applying for a balance transfer credit card.
1Poll of 2,000 UK adults conducted by One Poll, February 2019
2In 2018, UK credit card holders transferred an average outstanding balance of £2,260, with a typical APR of 17.9%, based on Bank of England figures. Those who don’t switch will be incurring interest of £468. Figures are based on £100 monthly repayment with no additional spending, on a balance transfer card with a 24-month 0% period, with 1.4% fee (£32).
Priya Sahib, Consumer PR Manager, Experian UK&I
Tel: 07816 491152 / Email: Priya.Sahib@Experian.com
Weber Shandwick for Experian
Tel: 020 7861 0762 / Email: firstname.lastname@example.org
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