09 December 2020: According to new analysis released by Experian, millions of UK credit card holders could secure hundreds of pounds worth of savings before Christmas by switching to a balance transfer card.
The Money Charity estimates UK households have an average credit card debt of around £2,241. Experian calculates that a customer with this balance, paying the minimum monthly payment of 3% (£67) with an APR of 20.9%, could be saving around £34 per month if they were to transfer their balance. After taking the 1.85% transfer fee into account, this results in an overall saving of £865 over 25 months.
Currently, 77% of consumers will see a balance transfer credit card product that they have a good chance of being accepted for, with 60%1 pre-approved on Experian’s price comparison marketplace. As well as helping people check their eligibility for a credit card without affecting their credit score, Experian customers can also use its Credit Limits service to see whether they will get the credit limit they need to cover their balance transfer before they apply.
Experian says financial providers are continuing to lend, and that there are now 41 credit cards on its comparison site, of which three are exclusive to Experian and 261 have a 0% balance transfer promotion.
Earlier this month Experian announced that the rise in consumer eligibility over the last lockdown period in November meant people’s chances of being approved for a credit card is now 35% higher than at the start of the first UK lockdown in March.
Amir Goshtai, Managing Director at Experian Marketplace said: “Switching credit cards could save hundreds of pounds and help you to pay off debts faster. Many people will have spent more money over Black Friday and Cyber Monday, so in the run up to Christmas, switching to a balance transfer card could help them cut the interest they pay. However, people should ensure it’s at a level they can afford, that they keep up with regular payments and stay within their credit limit in order to maintain their promotional rate.
“Before switching, people can check their eligibility on comparison sites like Experian’s, as its quick and won’t damage their credit score. The good news is our data shows consumer eligibility rising, and that lenders are continuing to bring products back to market. To give people even more certainty when choosing a balance transfer credit card, we even have some lenders that will confirm if their new credit limit will cover the balance they need to transfer through our credit limits feature.”
Experian also contacts its customers to let them know if they have a balance on their credit cards which they may be paying interest on unnecessarily, so they can save money.
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Notes to editors
 Figures taken using Experian’s price comparison marketplace
 Average credit card debt per household is based on latest figures from The Money Charity figures – October 2020 https://themoneycharity.org.uk/money-statistics/october-2020/
 Figure calculated on 2 December by Experian. The figure was calculated using the average UK household credit debt of £2,241, the minimum monthly repayment of 3% and a current APR of 20.9%
Rajan Lakhani, Head of PR, Consumer, UK&I, Experian
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