Lenders Raising Costs
November 23, 2008
Over the last three months the cost of credit card borrowing has gone up considerably with new figures showing that more than 10% of credit card providers are raising their rates. Sixteen credit card providers have put up the interest rates on purchases since August and all this has happened not taking into account the drops of Bank of England base rate. All this information has been put togeather by financial information group Moneyfacts.
Along with this another twelve cards have put up the interest on cash advances sometimes being an additional 5% interest added onto what is already an expensive way of getting cash.
11 balance transfer cards are also being changed by some providers where the transfer fee has gone up or there has been a reduction in the amount of time you have the 0% balance transfer period for.
Moneyfacts have noticed that in the last three months the average interest rate has risen from 16.8% to 17.2%. Analyst for the group, Michelle Slade says “During the past year, card companies have continued to increase the charges on their cards and consumers will find they will be stung more severely than ever before.”
“Just like on mortgages, card companies are factoring in a much bigger margin for the risk of consumers defaulting, so rates are going up rather than down.”
Recent additions :
Related Posts
- Increased Credit Card Spending Surprisingly new figures have shown that even in the current economic climate spending on UK credit cards and debit cards in the month of September increased. UK payments association APACS advise
- How The Mighty Have Fallen Citigroup, one of America's biggest banks, one that has been at the heart of American finances sinces it emergence back in 1812 has hit the ground with a thump, due
- Store Cards Versus Credit Cards Consumers that decide to go down the road of store cards rather than credit cards this Christmas could be landing themselves with interest of around £ 1.9 million, which could
- Credit Cards Costing More Credit Card companies are going against government warnings to make their credit card deals fairer to customers and face investigations by industry watchdogs if do not change their ways. Despite there
- Declined Applications For Financial Products According to research carried out by MoneyExpert.com, around 5 million applications for new credit cards and loans have been rejected by lenders over the last six months. The figures work
Comments
Got something to say?