Secured loans and long-term credit card borrowing
08/04/2008Many people are turning to credit cards to take out a loan rather than opting for finance products that offer a better rate of interest, it has been suggested.
According to moneysupermarket.com, the last decade has seen a number of changes in the credit card industry and consumers are now increasingly likely to use a credit card for more long term borrowing.
It is reported that around 35 per cent of credit cards are used in this way and according to Steve Wiley, head of credit cards at the website, this can be dangerous if the cardholder is not careful with their spending.
"This [kind of borrowing] only works if you follow the golden rules of making at least the minimum monthly repayment on time and not spending on the card," he warned.
Many people choose secured loans over credit card lending as very often the competitive interest rate is more attractive for long-term borrowing.
 © Adfero Ltd
<< Back to News page
|