The economic downturn has made people more financially savvy and consequently they are more likely to shop around for the best credit card deals, a spokesperson of a financial information website has stated.

Darren Cook, spokesperson for Moneyfacts.co.uk, said the low savings rate due to the Bank of England base rate being historically low for 12 months has also led to people shopping around for the best savings deals to make the most of their hard-earned savings.

Credit card lending increased by £0.2 billion in January, new figures from the Bank of England Lending to Individuals report have shown.

However, the annual growth rate for consumer credit was -0.2 per cent.

Loan approvals for house purchase, meanwhile, decreased between December and January from 58,223 to 48,198.


Experts have suggested credit card providers are being more wary about lending money due to the economic downturn. The average credit card interest rate has now reached 18.8 per cent.