The changes to regulations are due to come in later this year. However, a number of credit card providers have decided to throw down the gauntlet by bringing the changes in early, which mean that cardholders can start to benefit right away rather than having to wait until the changes become mandatory, which would be a few months down the line.

It has now been announced that AA credit cards have become the latest to decide to bring the new regulations in earlier than necessary, and repayments made by cardholders will now be paid against the higher interest balances on the card first before being allocated to the lower interest balances.

The changes to these AA credit cards will benefit consumers who make gradual repayments on their balances because it means that they will be able to save money on interest on their debt.

Mark Huggins, the director of AA Financial Services, said that plans were underway to make the switch, stating: “This is a vital step towards helping millions of card holders to manage their debt. It is a change that the AA wholeheartedly endorses.”

AA credit card makes changes in consumers’ favour is a post from: Credit Cards Web

Credit card interest rates have reached levels that have sparked concern and complaint, with many outraged that the rates should be so high given that the base interest rate is at its lowest level in the history of the Bank of England. However, credit card firms have argued that the risk of default on credit card debt means that they have to charge higher rates of interest.

The rates charged on credit cards can vary based on the card, the provider, and the cardholder. There are some cards that offer more reasonable rates of interest but these are generally reserved for those that have excellent credit histories and are therefore classed as a lower risk when it comes to defaults.

However, there are also credit cards that charge astonishingly high rates of interest can cater for those with damaged credit ratings, who are the people that are classed as high risk borrowers because they are more likely to default on their credit card repayments.

With concerns of job losses and sustainable recovery in the economy still causing problems many lenders are unwilling to take the risk of dropping their interest rates. Many are also still being very selective over who they offer finance and credit to.

Default on credit card debt still big risk is a post from: Credit Cards Web

It has been reported that an astonishing 95 percent of High Street retailers do not meet the standards of the Payment Card Industry, and this is a claim that has been made by a number of leading security industry experts. The worldwide information security standard is known as The Payment Card Industry Data Security Standard (PCI DSS). These standards have been defined by the Payment Card Industry Security Standards Council.

There has been a great deal of concern with regards to the rising problem of card fraud and identity theft, and these standards were partly designed to try and combat this to some degree. However, given that the vast majority of High Street retailers are failing to meet these standards the situation could be worrying for consumers that tend to make purchases on their cards.

According to reports online retailers are performing better than their High Street counterparts when it comes to adhering to the standard, and despite increased pressure to stick to the standards most High Street retailers are failing to do this. Visa recently released figures showing that only 9 percent of Level 1 retailers, which are those handing more than six million transactions a year, were managing to adhere to the standards.

One security industry experts suggested that many retailers were only just getting to grips with the security standard, stating: “Most merchants are really now only coming to terms with the standard.”

Most High Street retailers do not meet credit card standards is a post from: Credit Cards Web

However, recently released figures have shown that there has been an increase in credit card spending recently, as the summer sales have hit the High Streets and encouraged consumers to spend on their plastic. The great value for money that retailers have been offering to get sales figures up as created a summer surge in credit card spending.

According to the figures the level of credit card spending for the month of July saw an increase of nearly 10 percent as consumers rushed out to take advantage of the great bargains available in the summer sales. The exact figure recorded was 9.9 percent, and officials said that consumers appeared to be ignoring fears about a possible double dip recession as they gave their credit cards a good airing.

The 9.9 percent increase was a year on year increase that was fuelled by shoppers’ determination to get the best deal possible and get their hands on a range of bargains that were made available by retailers that wanted to try and get sales up. According to Barclaycard July marked the third month in a row where annual growth rate in sales was above the 9 percent mark.

Stuart Neal, an official from Barclaycard, said that there appeared to be a revival in consumer confidence levels, which could be great for retailers. He stated: “If consumer confidence is taking a hit, it’s not happening on the high street. If spending remains at this level compared to last year, 2010 could prove to be a very good year for retailers.”    

Credit card spending up as summer sales hit is a post from: Credit Cards Web

Some common dos and don’ts for credit card users include:

Do make sure that you pay more than the minimum required, as otherwise you could be repaying your debt for many years to come as well as paying a huge amount of money in interest. The more you can pay each month the better, and if you can clear your balance in full all the better, as you will not be charged interest.

Don’t withdraw money from cash machines if you can avoid it, as the rate of interest charges for these transactions is much higher than the norm so you will end up paying through the nose to take money out on your credit cards.

Do remember that there are many other transactions that count as cash transactions, and these will also incur the same interest charges and fees as taking cash from a machine. This includes transactions such as buying gift vouchers, gambling, and transferring money from your credit card.

Don’t opt for a rewards based credit card unless you pay the balance off in full each month, as otherwise the interest charges will most likely outweigh any reward you will earn. These cards are only really suitable for those that repay their balance in full each month and are therefore not subject to interest payments.

Do consider a 0 percent purchase credit card if you want to spread the repayments on your balance. There are a number of cards that offer a generous interest free period on purchases, giving consumers more time to repay the balance without being charged any interest.

By exercising some common sense and being more savvy when it comes to both credit card use and repayment of debts on credit cards consumers can save themselves a lot of money. Also, it is important to ensure that you choose the right credit card to make the most of your finances, as otherwise you could still lose out and spend more than you need to.

Some dos and don’ts of credit card use is a post from: Credit Cards Web

The news is good for the many consumers who may have struggled to find a competitive credit card deal over the past couple of years, where the global financial crisis and difficult economic climate has resulted in restricted access to financial deals and packages.

Moneysupermarket.com reports that the increased competition within the credit card sector has seen the average interest free period on balance transfer credit cards increase to 15.4 months, and this is close to three months longer than the average interest free period seen in July of 2007, which was before the global financial crisis really took a hold.

There has also been an increase in the average interest free period on purchase credit cards, with the average period increasing to 12.2 months, whereas three years ago the average period was just 10.8 months. However, whilst the financial group said that these deals would come as good news to many it also said that consumers should watch out for higher standard interest rates.

Moneysupermarket’s Kevin Mountford said:”This is clearly great news and consumers should jump at the chance to get the longest 0% deal available.” He added: “When it comes to borrowing money either through a balance transfer or purchase card, consumers must therefore be extremely disciplined about payments and realistically plan their budget for repaying the debts they owe.”

Impressive credit card offers seen in July is a post from: Credit Cards Web

However, Virgin has now been knocked off its top spot following an offer that has been made available through the Natwest bank. The Natwest Platinum Credit Card has now taken the top spot as market leader for balance transfer credit cards after the bank extended the interest free period that was offered to customers by one month.

From this week both the Natwest and RBS Platinum credit cards will offer sixteen months of interest free credit on balance transfers, giving consumers even more time to repay their transferred balance without having to pay any interest on the debt, and overtaking the Virgin card by two months. The cards will continue to offer three months of interest free credit on purchases made on the cards.

The credit cards also offer a balance transfer fee that is very slightly lower than the one charged on the Virgin card, charging 2.9 percent. The offer on the Platinum credit cards from Natwest could really benefit consumers that have balances outstanding on other high interest credit cards, which could be costing them a fortune in interest if they are only making minimum or gradual repayments.

Consumers that are looking for balance transfer credit cards are advised to ensure that they look at both the interest free period being offered and the transfer fee that is charged.

Natwest overtakes Virgin on balance transfer credit card is a post from: Credit Cards Web

It has been announced recently that the number of contactless Visa cards in use in the UK is set to soar to twelve million by the end of this year, as more and more people realise the benefits and convenience of using this cards to make payment for smaller purchases. The cards require no signature or PIN to be entered, and therefore transactions can be made with speed and ease, which is great news for both the customers and retailers who are using the system.

Officials from Visa Europe said that its original prediction for the number of contactless credit cards, debit cards, and prepaid cards that would be in use for the end of this year was ten million, but that given the increase popularity and use of the cards they had decided to increase this estimate to twelve million.

Visa Europe also said that over the past six months the number of transactions that had been carried out with the use of a contactless credit card had doubled, which again reflected the rising popularity of these cards as more and more people became aware of them and discovered their benefits.

Mark Austin from Visa Europe stated: “Since its launch in 2007, contactless technology has grown in popularity and is fast becoming an everyday way to pay. This is demonstrated by the fact that the average value transaction is currently £4.30, showing that people are more and more confident, and keen, to use cards for smaller amounts rather than carrying cash.”

Contactless cards enjoy impressive growth is a post from: Credit Cards Web

The figure is said to be the second highest quarterly figure on record according to reports. Last year saw over £4 billion being written off on credit cards, and this equated to over 10 percent of all the money that was lent on credit cards. The Bank of England has said that the level of losses on credit cards has resulted in the interest rates on this type of borrowing increasing.

Over recent months there has been a lot of controversy over the rate of interest that credit card companies are often charging on credit card borrowing, but the Bank of England has said that this is partly down to the level of losses that credit card providers have experienced. Credit card interest rates are said to have soared over recent years, and whilst the base rate is at an all time low of just 0.5 percent credit card interest rates are spiralling out of control, especially on credit cards that cater for those with poor credit, where interest rates sometimes exceed 50 percent APR.

One credit card customer said: “Although having a credit card is really convenient and easy I can’t bring myself to use mine because of the rate of interest being charged. I can understand that lenders are nervous about the risk of default, but this means that those of us that would normally repay faithfully are having to think twice about using their cards.”

Increase in credit card write offs by banks is a post from: Credit Cards Web

For some parents the only funding option for the summer holidays will be to rely on a credit card, but it is important to avoid using high interest cards wherever possible as otherwise you will end up paying for more for your kids’ entertainment than you would otherwise spend because of the interest that you will be charged. For those that plan to repay the balance on their credit card in full within the interest free period the rate charges on the card do not make any difference. However, for those hoping to spread the repayments on any purchases or spending on their credit card over the summer holiday it is important to look for the right card.

Over the coming weeks many people will be paying for trips away, days out, and other forms of entertainment ready for the summer, and this could result in a surge of credit card applications because of the higher number of people that may be relying on the plastic to get them through the summer. It is therefore a good idea to get your application in as soon as possible, as there may be delays caused by the increase in applications and you could otherwise end up failing to get your credit card in time.

In order to save money on interest it is advisable to look for a good 0 percent interest purchase credit card, which will enable you to spread the repayments on your borrowing without being hit with interest charges providing you repay the balance in full within the specified interest free period. There are many different 0 percent purchase credit cards available these days, although most are only available to those with a decent credit rating.

You can use the internet to find the best deals on 0 percent purchase credit cards, and this should make the process easier, faster, and more convenient, as you can also make your application online. Try and find a card that offers a generous interest free period, as the longer the interest free period the more time you will have to repay the balance on the card without being hit with interest charges. However, do bear in mind that the interest free facility only applies to purchases made on the card and not on cash withdrawals and transactions.

Get a 0 percent purchase card for the summer is a post from: Credit Cards Web