How Much Does Your Christmas Shipping On Your Credit Card Really Cost?

By: Nationwide

Half of credit card holders do not know the rate they pay

With Christmas around the corner people are getting ready for one of the most expensive and stressful times of the year. A new survey by Nationwide Building Society has revealed that the majority of respondents (55%) still brave busy shopping centres to buy most of their Christmas gifts rather than shopping online. In addition to this the research shows that half (50%) of respondents do not know what rate they pay on the credit card they use most often.

Nationwide’s survey also found that:

• women tend to spend more than men when shopping at Christmas, with the majority of women spending between £250 and £499 in total on presents compared to men who spend between £100 and £249.
• overall, people spend most money on their children (47%) however men tend to spend most on their partner (47%).
• around one in five (22%) women have not received a present from their partner in the past compared to only 15% of men.

When it comes to finances at Christmas nearly three-quarters use a credit card for their Christmas shopping. Nationwide’s survey also found that:

• a third (33%) of respondents incur an interest charge on their credit card due to not paying it off straight away.
• more men (51%) than women (39%) clear their credit card bill straight away.
• the older people are the more likely they are to clear their credit card bill each month.

Unsurprisingly, men are more likely to hit the shops at the last minute, with double the amount of men (37%) than women (18%) not beginning their Christmas shopping until December.

Nationwide’s advice to consumers is to shop around for the best credit card deal before starting their Christmas shopping. Nationwide’s Classic and Gold credit cards offer a three month 0% introductory offer on new purchases, meaning that customers would have no further interest charges whilst they shop over the Christmas period. Nationwide also offers free extended warranty to all its credit card customers on many electrical goods which can be useful for people buying new TVs and DVDs this Christmas.

Jeremy Wood, divisional director at Nationwide , said: “With the majority of people using credit cards to make Christmas purchases, and half of them unaware of what interest rate they are incurring, consumers could be paying over the odds this Christmas. By taking a Nationwide credit card, shoppers benefit from lower interest rates and 0% introductory offers on purchases and balance transfers, which could help them to enter the New Year without incurring extra interest charges.”

Notes :

Research conducted among a random sample of over 1200 respondents online, by Tickbox.net October 2007.

Nationwide’s credit card includes the following features:

• three month 0% introductory offer on new purchases (Gold and Classic Cards);
• ten month 0% introductory offer on balance transfers (Gold and Classic Cards);
• commission free purchases abroad;
• up to 56 days interest-free credit;
• free purchase cover for loss, theft or damage to most purchases over £50;
• free 12 month extended warranty on selected gas and electrical goods costing over £50 that have a manufacturer’s warranty of up to two years;
• peace of mind for all cardholders with Nationwide Fraud Watch;
• typical 15.9% APR variable (Gold Card);
• typical 17.9% APR variable (Classic Card);
• positive order of payments – which means Nationwide ensures that the most expensive debt is paid off first when a credit to the account is made, unlike many other card providers.

Balance transfers at 0% must be made within 3 months from account opening and are subject to a fee of 2.5% (minimum £2.50).

A Gold card is most likely to be suitable if you are aged 25 or over, have an annual income of £25,000 or more, and have an excellent credit history. Alternatively a Classic credit card may be offered.

http://www.nationwide.co.uk/

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