Credit cards 'picked by brand'

A person is more likely to take out a credit card if they are impressed by the brand behind it, it has been reported.

Some eight out of ten are likely to put company recognition before any other factor when picking up new plastic, according to a Motley Fool reported.

While brand awareness may seem like a superficial attraction to taking out a card, two out of five are happy with the service they get from the credit providers they pick.

But David Kuo, the Motley Fool's head of personal finance, has warned the industry that it must take care of its customers.

"It must stop talking of introducing annual fees for low-usage customers, which sends out the wrong message to sensible consumers," he said.

This news comes as research from money charity Credit Action shows that the UK has amassed a personal debt mountain of £1.3 trillion.

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