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"Cost of credit card withdrawals increasing"

By admin | May 23rd, 2009 | Credit Cards

According to industry experts the cost of withdrawing cash on a credit card is increasing, just at the time when most cardholders are desperate to try and cut back on costs whilst becoming increasingly reliant on their credit cards because of the ongoing financial crisis.

Over the past year credit card firms are said to have hiked the cost of taking money out on a credit card, despite the fact that the base interest rate set by the Bank of England has been slashed to its lowest level in the three hundred and fifteen year history of the Bank of England.

The interest charges on credit card cash withdrawals can now go as high as 25.4 percent on average, and this is 0.4 percent higher than the average interest rate charges on cash withdrawals in April 2008, even though the interest rate was more than ten times higher than its is not during that period.

Withdrawal charges are also being pushed up by many credit card companies according to reports, with some charging a minimum of £5 per withdrawal, costing those that need to take cash out on a regular basis a pretty penny.

One industry expert said: ‘Credit card cash is a rip-off. Card holders need to remember that if they visit an ATM they’re going to pay through the nose for it. Rates continue to creep up making card cash one of the most expensive forms of borrowing out there.’

Experts are now urging consumers to be careful about making cash withdrawals and transactions on their credit cards, as the costs involved could end up costing them far more than they might think. There are some cards out there that do not charge high withdrawals fees, and those that do have to use their cards on a regular basis for cash transactions are advised to look for these and see whether they can find a card that offers greater affordability.

Tags: credit card cash advance, credit card charges, credit card withdrawels

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