Credit cards have seen a steady increase in interest despite a lowering base rate, according to financial advice website Moneyfacts.co.uk.
In a survey of the market, the site found that competitive-rate credit cards have vanished and been replaced by higher-interest deals, with 12 products from American Express, Bank of Scotland and others seeing a price hike in the last six months.
Those who are making the minimum credit card repayments required will be the hit the hardest, according to the website, with an average £408 more interest put onto balances of £2,000.
Michelle Slade, analyst at Moneyfacts.co.uk, said: "With only a handful of cards on the market linked to tracking base rate, very few have seen any benefit from the current all time low base rate."
moneysupermarket.com recently advised those with credit cards that larger repayments on debt will reduce the amount they pay in the long run.
| credit card news |
|---|
| CCCS: Making minimum credit card payment signals debt problems - Fri, 03 Sep 2010 |
| More credit cards being offered with zero per cent APR - Tue, 31 Aug 2010 |
| Barclaycard increases offers on its Platinum credit card - Mon, 23 Aug 2010 |
| More News |
Simplyhealth Dental Plan
Affordable cover from only £7.50 per month. Join now and get first month FREE
Income Protection Insurance
Get an instant quote with the award winning company
Amex Cash Back
Credit Card
Credit Card
Get 5% cash back on purchases with Amex
Credit card rates continue increase
Fri, 05 Jun 2009
Recommended links
Credit card comparisonTypes of credit cards available
Best credit card deals
Compare credit card providers
Credit card FAQs
Call to cap credit card rates
Barclaycard freezes credit card rates
news content
Search
