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Time to switch? Credit card rates hit 8 year high

Time to switch? Credit card rates hit 8 year high

Category: Credit cards

Updated: 28/07/2010
First Published: 14/07/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Consumers with credit cards are being urged to look carefully at their bills after the interest rates charged by lenders hit their highest level for eight years.

According to the Bank of England, the average rate charged on credit cards in June rose to 16.69%.

It is the highest level reported since February 2002 and a staggering 33 times greater than the Bank of England's base rate of 0.5%.

As a result, credit card borrowers are being advised to check their credit card bills thoroughly.

The news means there might not be a better time than now to switch your credit card provider.

Moving to a 0% on balance transfer card allows you to pay off your outstanding balance without incurring any more interest.

As long you can pay back the balance transferred in the allotted interest free period, which can often be well over a year, then no interest will be paid.

0% balance transfer cards from well known names, including Virgin Money, Egg Card and the AA, are all currently available.

Why not check out our credit card best buy charts to see if you could be better off moving elsewhere.

Card Tip: If you do not make your monthly minimum repayment you risk losing the introductory 0% offer. Pay your credit card statement on time by direct debit.

Any rates or deals quoted in this article were correct at the time of writing.

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 Any products featured may be withdrawn by their provider or changed at any time.