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Moving forward into 2022

With inflation continuing to rise, and borrowing becoming more expensive as a result of the increasing Bank of England’s interest rate, the impact of the pandemic is still unfolding. 

This follows a time when many found themselves with a reduced income due to the furlough scheme, and ahead of what is expected to be a series of tax increases to cover the cost of covid. 

Bank of England data out this week shows that consumer credit rose by £1.23bn in November*, the highest increase in almost a year and a half. This suggests a greater reliance on lenders to tide customers over.

It’s therefore as important as ever that we continue to work with our partners to bring more transparent products to market, providing our customers with the tools they need to move their finances forward.

‘Tis the season to transfer balances

When offer periods come to an end, customers will usually find themselves paying interest on outstanding balances. With the average representative APR for non-balance transfer cards being 31%**, customers can suddenly find it much more difficult to clear debt quickly.

As we look to freshen up our finances after the festive season, we should all be making the new year's resolution to stop paying unnecessary interest. 

Traditionally January has been the busiest time for balance transfer credit cards, with an annual average of £1.55bn† being transferred in the five years prior to the pandemic.

With TotallyMoney customers a third more likely to be accepted for a credit card now than at the start of the pandemic**, and balance transfer offers being their best since 2018‡, this year should be no different. 

New options for customers  

Following a series of API integrations in 2021, we were able to launch new partners to market in as little as four days. This provides customers with a greater choice of products, helping them gain financial momentum and get on the right track for 2022.

These integrations help improve transparency, enabling features such as pre-approval, guaranteed limits, and guaranteed rates. By removing the guesswork and letting customers know how likely they are to be accepted, the amount they’ll borrow and the interest rate they’ll need to pay, we can help them make one application and lessen the impact on their credit score.

By continuing this work in 2022, we expect these features to become the standard. As a result, together with our partners, we’re creating a more transparent market which benefits everyone.


Together with our partners, we’re creating a more transparent market which benefits everyone.

*Bank of England

** TotallyMoney research December 2021

UKFinance

Moneyfacts

We're on a mission to help everyone move their finances forward and gain financial momentum.


TotallyMoney is an independent credit broker, not a lender. Our comparison service works with most leading lenders, covering the majority of the market. Though we may be paid a fee by lenders or brokers this never influences how our products are ranked.

We don't provide financial advice. Product information is obtained from independent sources and rates displayed may vary depending on your personal circumstances. While we make every effort to ensure that information is up to date, you should always confirm the terms of the offer with the product provider.

TotallyMoney is owned and operated by TotallyMoney Limited which is registered in England and Wales (Company Registration Number 06205695). TotallyMoney Limited is an Appointed Representative of TM Connect Limited, which is registered in England and Wales (Company Registration Number 06967012) and authorised and regulated by the Financial Conduct Authority in respect of consumer credit related activities (FCA FRN: 511936). Trading Address and Registered Office: Chapter House, 16 Brunswick Place, London N1 6DZ. Credit is available, subject to status, only to UK residents aged 18 or over.

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