Jump to main content of pageaccessibility informationSitemap
5 Oct 2024
Compare Mortgages Compare Life Insurance Compare Remortgages

Go Direct Personal Finance News  2009

Credit card rates at 12 year high

Increased competition in the credit card market at the end of the 1990s meant rates started to fall, dropping to their lowest level in 2006.

Since 2006 as the economic downturn took hold, credit card rates have steadily increased, with the average rate today hitting a 12 year high of 18.8%.

Date

Average Credit Card Rate

Base Rate

Feb-10

18.8%

0.50%

Feb-09

17.7%

1.50%

Feb-08

16.8%

5.50%

Feb-07

17.0%

5.25%

Feb-06

14.8%

4.50%

Feb-05

15.2%

4.75%

Feb-04

16.1%

3.75%

Feb-03

17.2%

4.00%

Feb-02

17.8%

4.00%

Feb-01

16.5%

6.00%

Feb-00

17.8%

5.75%

Feb-99

18.7%

6.00%

Feb-98

21.1%

7.25%

Source: Moneyfacts.co.uk 15.2.10.

Michelle Slade, spokesperson for Moneyfacts.co.uk commented:

“The UK continues to suffer from a high level of unemployment and providers are worried about the increased risk of customers not repaying their debts.

“This increased risk continues to be passed on to both new and existing credit card customers through higher rates.

“Borrowers with £5,000 debt on the card, who just repay the minimum* each month, will now repay an additional £2,289 over the life of the debt than they would have in February 2006.

“Other charges such as balance transfer, cash withdrawal and foreign transfer fees also continue to go up, leaving customers paying more across the board.

“Card companies are reassessing their existing customer base, resulting in numerous customers seeing a rise in their rate.

“Many such customers who would previously have switched to another provider are now finding it’s not so easy to do so.

“Competitive deals for balance transfers and introductory purchases remain on offer, but card providers are being extremely selective over exactly who they accept for these deals.

“If customers do receive notice of a rate increase, they should challenge their provider as to why the increase is necessary, especially if their credit status hasn’t changed.”

* based on minimum repayment of 2.5%, min £5

 

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.

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.

Go Direct.co.uk is a trading style for website purposes of Go Direct UK Ltd.

Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales Company 5703224. FCA Number 456600

We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £349

Remortgage | Mortgage Guide | Remortgage Guide | Life Insurance Quote | Mortgage Life Insurance | Decreasing Life Insurance | Home Insurance Quote | Conveyancing Quote | Mortgage Comparison | Free Mortgage Advice | Mortgage Rates | Mortgage Payment Calculator | Mortgage Protection | Best Mortgage | Mortgage Lenders | Income Protection | Remortgage Lenders | Gas and Electric | Remortgage Calculator