Recent reports indicate that financial services providers in the United Kingdom are considering charging new, up-front fees for owning and using credit and debit cards, while simultaneously raising APR rates. However, a parallel survey carried out among UK card users points out that over two thirds of interviewees are likely to resist these changes by opting for cards with very low fees over cards with alluring rewards programs attached.

Thus, 68 percent of respondents indicate they prefer a card with no fees and low annual percentage rate (APR), while only 20 percent of survey participants indicate that rewards are the most important feature for selecting a card. Moreover, 35 percent of participants highlighted low fees as the primary factor which prompted their decision to apply for a new card. Thus, it emerges that UK consumers are primarily interested in low-cost borrowing options at the expense of reward schemes.

However, the same survey warns that increased funding costs and growing levels of bad debt are likely to force banks into imposing fees on credit card users, despite imminent difficulties in marketing higher costs. Currently, only 10 percent of UK consumers pay annual fees on their cards.

The survey was conducted by Auriemma Consulting Group for its syndicated market research service Cardbeat.