Experian has launched “Credit Limits” for balance transfer cards, a new, industry-first service so consumers can make more informed credit choices.
Experian says currently, people looking to switch their existing debt to a balance transfer card do not know whether they’ll be able to transfer the amount they would like to until they complete the application. That means many consumers have taken out new credit that doesn’t cover their existing debt. Yet making an application for credit leaves a mark on their credit report, regardless of whether they go on to use the card, which could impact their chances of finding the right credit for their needs.
Experian’s new service means people searching for balance transfer cards will know whether they will be able to transfer the amount they need before applying. This transformation to the way people can search for credit reflects Experian’s aim to boost transparency in the credit market and help consumers find the product that is right for them.
Amir Goshtai, Managing Director of Experian Marketplace, said “Currently, applying for credit cards can be a bit of a lottery as people don’t know if they’ll get the credit limit they need. But it doesn’t need to be that way so we are making it more transparent for consumers.”
“We believe people should know if they’ll be able to transfer their balance before they apply which will give them confidence. Managing money is daunting enough already and this change will help people find the right product for them much more easily.”
“People can save money by transferring to a balance transfer card. Nearly a fifth (19%) of credit cardholders are incurring interest on their current card, with just 10% transferring a balance in the past year to avoid paying interest.”
Vanquis is one of the first providers to guarantee people using Experian’s new comparison service that their balance transfer request will be accepted.
Amir Goshtai, continued: “We are proud to be leading the way to make credit cards simpler and more transparent for people. We continue to work with our other partners to expand the service further in the coming months.”