Credit Cards Rate Increases

Bloodstone

Banks raise credit card costs



Last Updated: Tuesday, 11 November 2008, 04:45 GMT
- Search: Banks credit card





Banks raise credit card costs


Banks have increased interest rates on millions of credit and debit cards even as the cost of borrowing plummeted to a 53-year low, according to a report.
A study of 240 credit cards showed that while the Bank of England dramatically reduced its official bank rate from 5% in May to 3% this month, the cost of borrowing on cards had gone up.
The research by banking experts Defaqto for The Independent showed that since May, the average annual percentage rate (APR) on cards rose by 0.4%, climbing from 17.2 to 17.6%.
Last week's shock decision from the Monetary Policy Committee (MPC) to cut rates by 1.5% to just 3% was the biggest change since March 1981.

DON79

Sorry but it seems that the banks should not be getting told off for not cutting mortgage rates but for not passing the rate cut onto credit card aprs! They give it to you with one hand by cutting your mortgage rate but find subtle sneaky ways to claw it back another route!

Rylynn

Now why does that not shock me, and thank goodnes I dont want one, cant have one, so they can do what they like with their cards! lovely feeling to know I really can cope and have coped for 3.5 years with no credit of any sort, a nice feeling for sure!