Aqua interest rate linked the Bank of England base rate 20 August 2018 at 11:06PM edited 5 February 2019 at 8:20PM in Credit Cards 2 replies 599 views

Legacy_user

Not useful anymore

gt94sss2

The important thing is to pay off your Aqua Card in full each month so that no interest is payable - that makes the interest rate charged irrelevant (as you say Aqua is on the high side)

As to the principle of automatically linking credit card rates to the Bank of England base rate, a number of credit card companies (including several large mainstream ones) have done the same.

Its in their interest to do this as a) base rates are near record lows and b) they can blame the Bank of England when the rates increase.

tripled

It simply means that if the Bank of England increase the base interest rate (currently 0.75%), then the interest rate on the credit card will automatically increase. Given the high interest rates Aqua charge, the impact will be negligible (barring some economic catastrophe).

I hold an Aqua card because it pays a good cashback rate. As I pay it in full by direct debit each month, I do not get charged interest, so the rate is irrelevant. Interest is only charged on cash advances, gambling transactions, and on the statement balance if the card is not paid in full by the due date.