Consider brands when credit card switching, says site - 08/01/2008

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Branding may obscure the limits of choice on the credit card market, consumers are being warned.

Moneyfacts analyst Lisa Taylor remarks that the 200 balance transfer deals on the market could make consumers feel they have a wealth of credit cards from which to choose their desired product.

However, she notes that balance transfer deals will not be applicable for different cards offered by the same company, making the market subject to more limits than may first appear.

For example, MBNA issues its own cards but also products by Virgin Money and Alliance & Leicester, making potential balance transfer deals impossible between these credit cards.

"It's important to check out the small print of any balance transfer deal and establish who is the credit provider for both your existing and new credit card deal, otherwise you could find yourself with a new card and your balance transfer being refused or charged at the standard rate," advises Ms Taylor.

The website has also this week warned that using an unauthorised overdraft can prove costly and should be avoided in favour of alternative fund arrangements.

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