Spokes woman for Moneyfacts, Michelle Slade said “I doubt we will see lenders cutting rates on credit cards, usually lenders only cut rates to attract customers.”

She advises that the only lender to offer cards linked to the base rate is the Co-operative Bank which will see holders of Gold and Platinum credit cards gaining from a 1.5% interest rate drop although with the Gold card having a £120.00 annual fee the interest rate will be around 19.4%.

Mortgages that the Co-operative Bank offered via Northern Rock and Yorkshire Building Society the cut passed on.

On the other hand the largest credit card provider, Barclaycard, has advised that it would not be be changing their interest rate (14.9%) due to the recent drops and a spokesman says “The primary factor in our pricing is risk, not the cost of money, so the cut will not have an immediate effect.”

Recent additions :

• Charity Credit Cards
• The Xmas Purchase Solution
• Declined Applications For Financial Products

An example of how this would work would be that when they used the Visa card, whatever carbon emission’s are gained from this purchase will be offset against something of the complete opposite, such as forestry or renewable energy.

Luc Janssen, who is head of Visa Commercial says “This new partnership means that we can offer members a ‘green’ payment capability across Europe that addresses the increasing demand for sustainable initiatives.  It is also easy for member banks to get involved as they won’t need to invest heavily in special back office functionality, as ClimaCount has that already in place.”

This new project for visa follows on from the Visa Greencard, which was launched into the consumer market over in Holland back in 2004.

Barclaycard are another company who are looking into this new area of the market and earlier this year launched the Breathe credit card where it is the customer who benefits.  Some of the benefits that the customers see are things such as discounts on home insulation, green energy and holidays in the UK which are done to encourage greener spending.  Along with this Barclaycard also give half of the products profits to various different environmental projects which aim at reducing emissions all over the globe.  Other credit card companies who have also produced similar products are the UK’s Co-operative Bank and Dutch banking group Rabobank. 

Recent Additions :

• Barclaycards Planning to Change
• Barclaycards Takeover of Discover Financial Services
• Looking For ‘Free’ Credit? 0% Purchase Credit Cards