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18 Oct 2019

News

Credit continues to get more expensive

Michelle Slade, analyst at Moneyfacts.co.uk, comments:

“With increasing costs on all household bills, many people are relying on their credit card to get by each month. But these people are going to find themselves out of pocket as purchase and cash rates, along with charges, continue to increase.

“Since the beginning of the year there have been numerous increases to rates and charges, with some cash rates being increased by over 7% and purchase rates by as much as 3%. Latest Moneyfacts.co.uk research reveals:

  • 22 purchase rate increases
  • 15 cash rate increases
  • Over 30 increases to fees (including balance transfer fees, cash withdrawals fees and foreign usage loading)

Full details of the increases are shown below

“The number of increases to purchase APRs is quite phenomenal. Normally credit card providers avoid such increases as these are the rates customers see first. It goes to show just how tough credit conditions have become for the institutions and this is being passed onto consumers.

“For example anyone with £5,000 of purchases on the Nectar Credit Card AMEX repaying the minimum 2.5%, min £5, the 3% increase  will find themselves paying an additional £1,823.75 in interest over the life of the debt.

“Credit card providers are tightening their criteria and anyone with a less than perfect credit history may struggle to get the most competitive deals. However, for those with an exemplary credit record there are still good deals to be had.

“The first thing to do when looking for a new credit card is to look at how you will use the card. If you have an existing debt on a card, it may be worth considering a 0% balance transfer deal. Currently balance transfers best buys are topped by Virgin Money’s MasterCard which offers 0% for 15 months. Alternatively, if you are looking to make some new purchases, you may wish to consider a 0% introductory purchase deal. HSBC’s Bank Credit Card MasterCard is currently offering 0% for 12 months. Anyone looking for a low rate card will find Barclaycards Simplicity Visa at 6.8% an attractive deal.

“Rates and charges on credit cards are only likely to continue to increase in the months ahead. If you are not happy with you current deal, make sure you shop around for a better one.”

 

Purchase rate increases

Card

Rate Jan 2008

Current Rate

Increase

Mint MasterCard

12.9%

14.9%

+2.0%

Barclaycard Platinum Cashback MasterCard/Visa and Platinum Long Term Balance Transfer MasterCard/Visa

14.9%

15.9%

+1.0%

Smile Classic Visa

18.9%

20.9%

+2.0%

Smile Current Account Customer Classic Visa

15.9%

16.9%

+1.0%

Smile Gold Visa

16.9%

18.9%

+2.0%

Smile Current Account Customer Gold Visa

11.9%

12.9%

+1.0%

The Nectar Credit Card AMEX

15.9%

18.9%

+3.0%

Capital One Bank Platinum MasterCard

9.9%

12.9%

+3.0%

Debenhams MasterCard

18.9%

19.9%

+1.0%

Post Office Classic MasterCard

16.9%

17.9%

+1.0%

NatWest Credit Card MasterCard, Gold Card Account MasterCard, Platinum MasterCard,
Classic MasterCard/Visa and Gold MasterCard/Visa

12.9%

15.9%

+3.0%

Royal Bank of Scotland Classic MasterCard/Visa, Gold MasterCard/Visa and Platinum MasterCard/Visa

12.9%

15.9%

+3.0%

ASDA MasterCard

16.8%

17.8%

+1.0%

Tesco Bonus MasterCard/Visa

14.9%

15.9%

+1.0%

Yorkshire BS Classic Visa

15.4%

17.9%

+2.5%

Source: Moneyfacts.co.uk 2.6.08

 

Cash rate increases

Card

Rate Jan 2008

Current Rate

Increase

Mint MasterCard

24.942%

27.948

+3.006%

Debenhams MasterCard

22.9%

29.947%

+7.047%

Egg Visa

22.9%

24.9%

+2.0%

Post Office Classic MasterCard

20.94%

24.942%

+4.002%

Post Office Platinum MasterCard

20.94%

22.941%

+2.001%

ASDA MasterCard

25.517%

28.385%

2.868%

NatWest Credit Card MasterCard, Gold Card Account MasterCard, Platinum MasterCard,
Classic MasterCard/Visa and Gold MasterCard/Visa

24.942%

27.948%

+3.006%

Royal Bank of Scotland Classic MasterCard/Visa, Gold MasterCard/Visa and Platinum MasterCard/Visa

24.942%

27.948%

+3.006%

Source: Moneyfacts.co.uk 2.6.08

 

Charges increased

Card

Charge Type

Rate Jan 2008

Current Rate

Increase

Aqua MasterCard

Foreign usage loading

2.75%

2.95%

+0.20%

Tesco Clubcard MasterCard and Bonus MasterCard

Balance transfer fee

2.50%

2.90%

+0.40%

Cash advance fee

2%, min £2.50

3%, min £3

+1.00%

Barclaycard Flexi-Rate Visa and Platinum MasterCard/Visa

Balance transfer fee

2.50%

2.90%

+0.40%

British Airways American Express Platinum AMEX

Account Fee

£120pa

£150pa

+£30

Alliance & Leicester MasterCard/Visa and Moneyback Reward MasterCard/Visa

Foreign usage loading

2.75%

2.99%

+0.24%

Capital One Bank Platinum MasterCard

Balance transfer fee

1.70%

3.00%

1.30%

ASDA MasterCard

Cash advance fee

2%, min £2.50

3%, min £3

+1.00%

Clydesdale Bank Gold MasterCard

Balance transfer fee

2%, min £2

2.5%, min £2.50

+0.50%

Yorkshire Bank Gold MasterCard

Balance transfer fee

2%, min £2

2.5%, min £2.50

+0.50%

Egg Visa

Foreign usage loading

2.65%

2.75%

+0.10%

American Express (All cards)

Default fees

£8

£10

+£2.00

BMW Card AMEX

Default fees

£8

£10

+£2.00

MBNA (All cards except AMEX)

Foreign usage loading

2.75%

2.99%

+0.24%

Virgin Money MasterCard

Foreign usage loading

2.75%

2.99%

+0.24%

SonyCard MasterCard/Visa and Sony Platinum MasterCard/Visa

Foreign usage loading

2.75%

2.99%

+0.24%

Citi (All Cards)

Cash advance fee

2%, min £5

3%, min £5

+1.00%

Sky Skycard MasterCard

Foreign usage loading

2.95%

2.99%

+0.04%

NatWest Credit Card MasterCard, Gold Card Account MasterCard, Platinum MasterCard,
Classic MasterCard/Visa and Gold MasterCard/Visa

Cash advance fee

2.5%, min £2.50

3%, min £3.00

+0.50%

Royal Bank of Scotland Classic MasterCard/Visa, Gold MasterCard/Visa and Platinum MasterCard/Visa

Cash advance fee

2.5%, min £2.50

3%, min £3.00

+0.50%

The Co-operative Bank

Balance Transfer Fee

2.5%, min £5

3%, min £5

+0.50%

Source: Moneyfacts.co.uk 2.6.08

 

Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry. 

 

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