New month brings increased credit card activity - Credit cards - News |

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

New month brings increased credit card activity

New month brings increased credit card activity

Category: Credit cards

Updated: 05/02/2010
First Published: 05/02/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
A new month has brought about increased activity in the credit card market, research conducted by has revealed.

The headline move was the introduction of a new cashback credit card. This market has been relatively quiet of late, but will be boosted by this new addition from Capital One.

At 19.9% APR on purchases and balance transfers, the rate is quite high, but the product offer 1% cashback on purchases with no maximum spend. In addition, £10 is paid annually in return for a fee of £18 per annum.

It is the second card in the cashback arena that charges a fee, Egg's Money World MasterCard being the other.

"This new addition was certainly the most exciting news to come from the credit card sector in the last week. It offers some good incentives, despite the £18 annual fee," commented Samantha Owens, principal consultant for Banking and Economic Insight at Moneyfacts Group.

Other developments included Egg maintaining its position as a Best Buy in the balance transfer market, by extending its deal to one month to 1.4.11.

This follows last week's boost to the balance transfer market from Barclaycard, which extended the deal on its Platinum card to 15 months.

Meanwhile, purchase rates have recorded a mixture of rises and falls. MBNA increased the rate on its Platinum Visa and Platinum Rewards Visa, whilst Capital One slashed the rate of its Plus MasterCard by 5% to 14.9%.

Compare cashback credit cards

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Credit card mistakes cost borrowers £948m

At this time of year, many people could be turning to balance transfer credit cards in an attempt to overcome their Christmas debt. However, many of these borrowers could get caught out in the year ahead, and they could end up paying for it.

6 of the best balance transfer credit cards

Does the thought of opening your credit card bills fill you with fear? If so, you're not alone! Christmas may be over, but unfortunately, many people will still be paying for it, after turning to credit to cover the cost of their festive spend.

Get a better credit score for the New Year

A new year means a fresh start, and one of the best things you can do is take a cold, hard look at your finances – particularly when it comes to your credit score.