Credit card interest rates and Bank of England interest rates

HeCh

Does anybody have any previous experience of how changes in Bank of England (BoE) interest rates link with credit card standard variable interest rates? For example, when BoE interest rates rise are credit cards likely to track those increases?

[Deleted User]

Only Halifax, I believe.

YorkshireBoy

Deleted_User wrote: »

Only Halifax, I believe.

Throughout LBG these days.

[Deleted User]

B of E base rates have no bearing on cc interest rates, after all most cc standard rates are around 18% whilst base rate is 0.25% thats what you get when cc lenders are offering new customers 99 years interest free, well I exaggerate slightly. Its about time these interest free deals were scrapped and standard rates reflected base rates.
Sadly while sites like this encourage card "tarts" there isn't much chance of that happening, so you have to question the whole ethos of "money saving experts", and how they drive people into debt, an unpopular view no doubt, until you give it some thought.

Chrysalis

I wouldnt worry anyway, no way will the BoE increase interest rates any time soon, many times in the past they have said they are considering it but it doesnt happen.

Also many of us take advantage of these interest free deals, and we dont want them scrapped, its a very cheap way of getting credit.

SnowTiger

Deleted_User wrote: »

Only Halifax, I believe.

LLoyds Banking Group and Barclaycard according to this MSE article.

HeCh

I knew savings account interest rates respond to changes in BoE interest rates but theven are useful responses. Thanks.

I suspect BoE will raise interest rates in the next 12 months to curb Brexit-fuelled inflation. I know the BoE is also concerned about the amount of household debt on loans/credit cards so maybe those offering these financial products will start becoming more cautious too.

RG2015

venison wrote: »

Sadly while sites like this encourage card "tarts" there isn't much chance of that happening, so you have to question the whole ethos of "money saving experts", and how they drive people into debt, an unpopular view no doubt, until you give it some thought.

Perhaps we should have an "Ethics Board" on MSE.

I have just given it some thought and have come to the conclusion that all money is theft.

nb0825

There's no reason why you should be paying cc interest rates. There's enough products on the market where you can become a new customer every 2 years and cycle you're existing debt through balance transfer onto 0%. MSE guides explain everything

eskbanker

nb0825 wrote: »

There's no reason why you should be paying cc interest rates. There's enough products on the market where you can become a new customer every 2 years and cycle you're existing debt through balance transfer onto 0%.

....which is exactly the sort of "never never" behaviour that venison was highlighting as ethically questionable!

If the credit market enables (or even encourages) people to borrow at 0% with an apparently realistic prospect of rolling forward into equivalent deals on an ongoing basis, then it seems fair comment to me that this is a recipe for future problems when the cheap credit bandwagon comes to an end and leaves many in unaffordable debt....

Chrysalis

eskbanker wrote: »

....which is exactly the sort of "never never" behaviour that venison was highlighting as ethically questionable!

If the credit market enables (or even encourages) people to borrow at 0% with an apparently realistic prospect of rolling forward into equivalent deals on an ongoing basis, then it seems fair comment to me that this is a recipe for future problems when the cheap credit bandwagon comes to an end and leaves many in unaffordable debt....

If that happened I would just pay my debt off. I worry about it when the time comes, not in case it happens in 5 years, I could be dead by then.

We in an era where credit availability is extremely important to the health of the economy, in addition no government will want higher interest rates as it will threaten their precious housing market.