Halifax - One flat interest rate......be afraid

Maelstrom_2

Using similar language to their 'simple overdraft charges' HBOS are evening out their interest rates for Credit Cards - ala the Clarity Card.

Now given that cash withdrawals tend to be a good 10 percentage points higher than purchases it's entirely feasible to assume that Halifax is going to put the APR up a couple of points to average it out.

Plus given that it will be linked to the BOE rate which cannot go any lower, there will be a marked rise over the next couple of years as the economy stabilises (touch wood).

The difference with the Clarity card of course, is that it offers no 0% introductory offer for purchases or balance transfers.
There's no indication other than the flat rate that Halifax will model their cards on this particular product

Announced today, existing Halifax and Bank of Scotland credit card customers will soon benefit from new harmonised rates which will be introduced from August this year. The harmonised rates will link to the Bank of England base rate from November 2011 and create even greater transparency in the products and services that we offer.
Benefits include;

• Simplifying rates by introducing one standard single personal rate for customers, however they use their card
• Linking customers’ interest rates to the Bank of England base rate, which helps give our customers more foresight over how their rates may change
• Outlining potential future rate changes and providing clear reasons to customers as to why we may change their rate

Commenting on the changes Credit Cards Director, Ken Stannard said: “As a major credit card provider it is essential that we lead the industry in terms of transparency and simplicity. By introducing one single rate, our customers can clearly see the interest they are paying for every transaction. By linking to base rate we are also able to mirror any price movements in the market in a way that is completely transparent; using a measure that our customers will recognise.”