Credit card companies are competing with debit card use

Credit card companies are increasingly competing with debit card use because so many Britons are wary of interest rates, an expert has claimed.

Peter Harrison, head of credit cards at comparison service Moneysupermarket.com, revealed that about 60 per cent of consumers pay off their credit card balance off in full every month.

They want to know how they can entice them to use credit cards instead of debit, he said. The answer is to give them something for nothing.

Companies are therefore offering 'rewards' for spending money to entice consumers to use their card.

Meanwhile, Moneyfacts, the independent provider of personal finance information, claimed recently that the credit card market has seen a resurgence in recent months.

In the last year, the number of cards charging no interest on new purchases for at least ten months has increased by a staggering 450 per cent, Moneyfacts said.

Over the same period, the number of cards offering zero per cent on balance transfers for at least ten months has climbed by 20 per cent.