The most recent polls of moneyfacts.co.uk users show that 38% of us have switched credit card companies because of bad customer service. On top of that, 36% of us have not used a certain provider because a friend had a bad experience with them.
When it comes to personal loans, 18% of us have switched providers because of bad customer service, and 40% of us have stayed away from a certain provider.
These numbers show that good customer service is still important to us all. We expect to be treated fairly and to get the help and information we need if we have a question or problem with our own money.
When deciding who to get a loan or credit card from, word of mouth is also a big factor. When we don't like something, we tell everyone about it. We rarely tell our friends how helpful or good a service is, which is bad for the people who offer it.
We move our credit cards less often because of bad service than we do our personal loans. The main reason for this is that if you pay back a personal loan early, you may have to pay a fee. This can add up to a lot of money. So, even if you're sick of your lender's customer service, make sure you know what the costs are for leaving.
If you've heard bad things about a service provider, you don't have to use them. There are so many different rates for personal loans and credit cards that it's best to look around to make sure you're getting a good deal. The examples below show that the interest rate is an important thing to think about when choosing where to borrow money.
Rates for loans can range from 5.5% to more than 20%. This makes a difference of more than GBP50 per month, or more than GBP3,000 over the life of a GBP10,000 loan. This shows that you shouldn't take out the first personal loan you see. But the rate you get may depend on how good your credit is. This is a way for lenders to figure out how creditworthy someone is. So, you might not always be able to get the headline rate. Before you get a personal loan, make sure you know what rate you are getting.
Credit card interest rates can go up to more than 20%. If you had a GBP1,000 balance on your credit card with a 20% interest rate and made the minimum payment each month, you could save more than GBP100 in a year by moving this balance to a credit card with a 0% balance transfer deal.
