Originally Posted by
Roger
Nonsense!
You make it sound as though interest is compulsory in the UK.
It certainly isn't. I have NEVER paid credit card interest and have earned hundreds of thousands of miles using credit cards. And BTW, some cards do have annual fees, though much lower than in Switzerland.
I think what you're saying is the UK credit card market is highly competitive. If you don't want to pay all of the bills you have incurred, there are plenty of low interest and balance transfer deals available. Paying interest is optional, and you pay no interest if you settle your bills in full. And even Swiss credit cards charge interest on bills not paid in full.
On the other hand, the Swiss credit card market is certainly not competitive. 700 CHF as an annual fee? Nobody would get away with this in a competitive market. Why, even my platinum AmEx card costs a third less than this with significantly higher benefits IMO.
I know, I know. Switzerland is a smaller market etc etc. But net worth per capita swings the balance and is not a reason for high fees.
Calm down. I'm just saying that on average, UK residents certainly use more their credit card for credit. Much more of the income there comes from interest where in Switzerland a large portion of the population pays in full at month's end. You need to get your income from something else.
I work in the industry, believe me that's facts.
Now if you pay in full your bill, that's good, but you certainly don't represent the whole population.
Another fact is that the use of credit card is much more developed there than it is in Switz. That helps as well.