Although credit card cheques may seem like a tempting way to pay for Christmas, consumers should be aware they have higher APRs than most credit cards, says MORE TH>N.
The financial services provider says a third of Britons have received credit card cheques from their banks, a fifth of whom said they were encouraged to use the cheques by their credit card provider, even though they have a higher rate.
MORE TH>N says that while cards have an APR of around 17 per cent, cheques can have an APR of 20 per cent or above. There is also a handling fee of two per cent for cheques and they do not offer the purchase protection provided with credit cards.
Graham Hollebon, head of personal finance at MORE TH>N, said: "We would advise people to consider very carefully the alternatives before using a credit card cheque.
"Cheques can be an expensive way of funding your spending and almost certainly it would be cheaper to use plastic instead."
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