According to new research from price comparison website Moneysupermarket.com, more than three million Britons are incurring unnecessary charges by having the "wrong" plastic product for their needs.
Around ten per cent of the UK's 31.6 million card holders have a card that does not provide them with the best services in relation to their method of using credit, meaning that they collectively face a £120 million bill in interest charges.
Half of all UK card holders (48 per cent) use their card for direct purchases, the price comparison site said, yet only one in ten users chose their card based on a low purchases interest rate.
"Credit cards offer an easy and appealing payment solution, but not being savvy about how to use them can cost consumers a lot of money," said Rob Kenley, Moneysupermarket.com's head of credit cards.
"It is important to work out why you need to use a credit card and in turn, seek out the appropriate one to match your needs. Don't be taken in by the headline rates on offer because the cheapest deals do not automatically signal that the card is right for you."
The usual "headline rate" is for balance transfers and while only six per cent of consumers said they use their credit card for this purpose, around 15 per cent said this was the first thing they looked for from a credit card offering.To read more about credit cards, click here.
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