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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 It is now over 6 months old so the content may be out of date.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%.

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