Related Credit Card Article

"Cardholder can do something about rate hikes"

By admin | September 23rd, 2008 | Balance Transfers

Most borrowers in the UK have become used to having to accept borrowing costs and interest rates without question when taking out finance, and therefore when credit card providers push up the borrowing costs and interest rates on our credit cards many of us don’t take any action but simply make the higher repayments. However, a recent report has suggested that too many consumers are simply sitting back and letting card companies get away with extortionate rate and charge hikes, and that consumers need to start taking appropriate action.

Whilst many cardholders think that they are being ripped off by credit card providers in terms of the fees and charges that are applied, many simply sit back and pay it despite their feelings. However, industry officials have said that cardholders and borrowers do not have to put up with these hikes, and if they feel that they are being charged too much on their cards they should look at finding another suitable, more competitive card.

One industry official stated: “As prices continue to rise, many more consumers are seeing their credit card bills increase. Even if you are not one of the people who is having to use your credit card just to get by each month, the likelihood is that you have been hit by an increase of some sort from your card provider.”

Another said: “I’d strongly advise those with an outstanding balance to move to the longest term 0% balance transfer available, currently Capital One, followed by Virgin, to keep your interest down. If you are thinking of paying off over a longer term, look for a low rate for life or a low standard rate credit card.”

Recent research has shown that there are now around seventy two credit cards that charge 17.9% or more in interest, and officials have said that there are better deals to be had out there for those that take the time look and apply. Cardholders looking to make purchases on their cards could save money by switching to a more competitively priced card, and those with existing balances on high interest credit cards could benefit from a competitive 0% balance transfer deal.

Tags: Balance Transfers, capital one, interest rates, virgin

Related Articles:

• Credit card customers urged to take action over rising costs

  The high levels of bad credit card debt in the UK coupled with the effects of the credit crunch that has taken hold in the UK has resulted in a number of credit card providers hiking up various fees and charges over the past couple of months, with over 130 rate and fee hikes reported....

• Brits become more dependant on credit cards

  A recent report has shown how many Brits have become increasingly dependant upon their credit cards, particularly given their strained financial situations and the difficulties that many are experiencing when it comes to getting other forms of credit. This increasing dependence on credit cards is likely to lead to spiralling debt levels, and there are...

• Some tips to consider before applying for a credit card

  Before applying for a credit card, check to see if the card provider is offering you one or more (and preferably all) of the following: * Introductory Rate * Balance Transfers * Annual membership fees * Statement period & interest free loans * APR * Minimum monthly repayments * Loyalty Programmes An introductory rate Special rates of as little as 0 percent APR can...

• Consumers can benefit from contesting credit card fees

  Many credit card firms have increased credit card interest rates for customers without any explanation or reason in a bid to make more money from the consumer. However, a recent report has suggested that consumers should always contest any unexplained credit card interest rate increase with their provider, as there is a good chance that...

• Watching out for the catches with 0% balance transfer cards

  Following the expensive Christmas and New Year periods many consumers have been looking to transfer their balances from their high interest credit cards onto 0% balance transfer cards, but experts are urging these consumers to watch out for the catches that comes with many 0% balance transfer cards so that they don’t end up paying...

Other Recent Articles

Increase in availability of interest free credit cards

A recent report has claimed that the number of interest free balance transfer credit cards is on the increase, with...

By admin | March 13, 2010 | Read More

Cash back credit cards set to become increasingly rare

The rewards based credit card has become very popular over recent years, particularly amongst those that tend to repay their...

By admin | March 9, 2010 | Read More

Capital One customers hit by huge increases on credit cards

According to recent reports many credit card customers that have cards with Capital One have been stung with huge increases...

By admin | March 5, 2010 | Read More

New high for credit card interest rates

Recently released figures have shown that credit card interest rates in the UK have reached a new high, despite the...

By admin | March 3, 2010 | Read More

Credit card firms reject many proposals

A number of proposals have been put forward recently to try and increase fairness for credit card customers, with the...

By admin | March 1, 2010 | Read More