Which? issues warning over costly credit card mistakes

According to the organisation’s own research, one in five consumers who do assess their credit card reports finds that mistakes have been made and this can often lead to debt management problems.

Which? explains that credit-scoring systems affect the interest rates that consumers pay and if the information is inaccurate some individuals could find themselves paying the price for not assessing their own financial information.

Martyn Hocking, the editor of the Which? Money publication, said: “You can check all three files for a total cost of £6 – definitely money well spent when you consider what you could pay in additional interest if there’s a mistake on your files.

“You don’t have to pay for expensive options promoted by the agencies, though, and watch out for unnecessary ID theft insurance – you can protect yourself for far less simply by checking your files and bank statements.”

A report from financial comparison firm Fool.co.uk recently revealed that 80 per cent of credit card users in the UK select their provider based on the brand rather than payment features.