04:59:34 AM Monday, May 26, 2008

What Are the Credit Card Habits Across the Ocean?

Great Britain and America at first sight seem to be two absolutely different countries with different political systems, history, customs and traditions. But if you look closer, you will find a few things that these countries have in common. First of all, it is the English language, of course. Though the UK and the American versions differ a lot, it is still the same language.

The USA and the UK are both developed countries with high standards of living, high level of scientific and technical progress and diversified, healthy economies. What else the countries share - is the leading positions in the world credit industry. But are Britons' credit card habits are similar to the US credit consumers' ones?

As well as Americans, Britons are active and avid users of credit cards. According to the results of the recent research conducted by the British Banker's Association, about 78% of adult Britons have at least one plastic. Over 3 million of the British own 5 and more credit cards.

The statistics shows that around 35% of British people often use their plastics for everyday needs and purchases. But there are people (about 27%) who prefer cash to credit cards. However, nearly 30% of the UK citizens carry no more than ?10 in cash in their wallets to pay for a bus ticket or for a ride in subway, or to buy a can of soda. About a half of the British withdraw cash just once a week.

But as people get older, they tend to carry more cash in their pockets. Youngsters from 18 to 24, as a rule, have around ?15 in their wallet, while people who are over 50 years old have at least ?45-50 in cash with them. No wonder, for in 1950-1960ies UK credit card deals were not such a widespread payment tool in Great Britain.

As for younger UK generation, they were born in the times when the credit card industry was well-developed in the country. That is why young British people get used to dealing with credit cards faster.

Actually, the situation with credit card use within different age groups in the UK reminds American credit card holders' habits. But this is not the only aspect associated with credit cards that makes the UK credit card industry akin to the US one. British consumers suffer similar credit problems.

The credit crisis affected British card holders as well. They face higher credit card charges and more strict qualifying standards. That is why most British credit consumers do their best to keep their credit score high and maintain good credit history in order to qualify for good credit cards without any problems.

Over 50% of British credit card users pay off their monthly balances in full. Apart from the 35% of Britons that use their plastics for everyday needs, the rest of the credit consumers keep their plastics to make only big purchases they plan out beforehand. This way the British accumulate less credit card debt and less interest.

However, though the English people are known for their punctuality, being prim, prudence and frugality, not all of them manage to stay away from late payment fees and impressive credit card debts.

Balance transfer cards that allow customers shift their balances to plastics with interest-free promotional period are very popular in Great Britain. But their teaser rates usually do not last as long as the intro periods on the US credit cards. Low rate credit cards are also among the top offers searched by people living in the UK.