Rail fares hiked by at least 4.1% - Credit cards - News - Moneyfacts

News

Rail fares hiked by at least 4.1%

Rail fares hiked by at least 4.1%

Category: Credit cards

Updated: 15/08/2013
First Published: 14/08/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Rail fares across the UK are set to rise by at least 4.1% in January after inflation figures were revealed yesterday.

The Government regulates annual increases in rail fares, including those for season tickets, anytime single tickets around major cities, and off-peak inter-city return tickets, by linking them to the Retail Prices Index (RPI) figure for July.

This means that because RPI was 3.1% last month, from next year those fares regulated by the Government will rise by at least 4.1% (RPI + 1.00%).

But for some rail passengers fares could rise considerably more since the Government allows train companies to vary regulated fares by up to 5% above the average 4.1% rise on condition that fares that increase by more than the average must be balanced by others that rise by less or fall.

What can you do?

If you're a frequent train passenger facing a hefty bill for your season rail ticket next year, you could use a credit card that offers 0% interest on purchases for a set length of time. Currently, the top 5 0% purchase credit cards all offer deals that are longer than 12 months, which means you'll have a whole year to pay off your season rail ticket.

As with any form of credit, you must make sure you can afford to meet the monthly repayments. Before committing to a purchase card, set up a spending limit and a repayment plan to ensure you can remain in control of your card. Also, the 0% aspect only applies to purchases, so always avoid using these cards to withdraw cash from an ATM.

Here are the top 5 cards offering 0% on purchases:

tesco Bank
Tesco Bank
Clubcard Credit Card
for Purchases MasterCard
16.9% APR
  • 0% interest on introductory purchases for 18 months
  • 51 days' interest free
  • No fees for Tesco travel money
  • Tesco Clubcard points earned for spending on card
  • 0% on balance transfers for 9 months

Penny saysPenny says…
"Sitting proudly at the top of the purchase card market is this deal from Tesco Bank.
"Additional incentives include earning Tesco Clubcard points for spending as well as no fees for customer's using Tesco's travel money service."

Halifax
Halifax
Purchase Credit Card MasterCard

16.9% APR
  • 0% interest on introductory purchases for 17 months
  • 56 days' interest free
  • 0% on balance transfers for 6 months

Penny says…
"Taking silver position is this card from Halifax offering 0% on purchases for 17 months.
"This deal also offers 0% on balance transfers for 6 months."

MBNA
MBNA Limited Fluid
Purchase Credit Card Visa

16.9% APR
  • 0% interest on introductory purchases for 16 months
  • 50 days' interest free
  • 0% on balance transfers for 14 months
  • Contactless payments up to £20

Penny says…
"In third spot is MBNA offering a competitive 0% on purchases for 16 months.
"Customers wishing to transfer balances will also benefit from the generous offer of 0% for 14 months."

Natwest
NatWest
Platinum BT & Purchase Credit Card MasterCard

16.9% APR
  • 0% interest on introductory purchases for 15 months
  • 56 days' interest free
  • 0% on balance transfers for 15 months

Penny saysPenny says…
"Falling just outside the top three is this attractive card from NatWest.
"This deal also offers 0% on balance transfers for a cracking 15 months."

M&S Bank
M&S Bank
MasterCard

17.9% APR
  • 0% interest on introductory purchases for 15 months
  • 55 days' interest free
  • One point earned for every £1 spent at M&S
  • 0% on balance transfers for 12 months
  • Emergency cash service offered

Penny saysPenny says…
"In a similar vein to the Tesco Bank Clubcard Credit Card, this deal from M&S Bank offers customers the incentive of receiving points for spending.
"A competitive 12-month balance transfer period is also offered with this card."

Information & Rates correct as at: 14/08/2013

What Next?

Compare the Best 0% Purchase Credit Cards

Search all available 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

Top credit cards for Christmas spending

‘Tis (just about) the season to be jolly, but before all that festive fun begins, chances are you’ve got a bit more shopping to do. But, if you’re turning to credit to fund things, you’ll want to use cards that offer 0% interest deals on purchases.

Spooky reality of high balance transfer fees

Credit card debt is scary at any time of year. While most might assume that opting for the longest deal on offer would save them the most, our data shows some of the longest deals can actually work out to be the most expensive.

Reward credit cards that become ‘pointless’

If you regularly use cards to pay at the till, you may have considered opening a reward credit card to earn points every time you spend. However, not all of these cards are as rewarding as they may seem…
 
Close