Has your credit card rate shot up?

28 August 2009

Credit card providers have hiked interest rates over the past eight months, dealing a hefty blow to their loyal customers.

An astonishing 12 credit card providers put up their interest rates during the first half of the year, according to data provider Moneyfacts. Culprits included American Express, Bank of Scotland, Capital One Bank, Halifax and Nationwide.

Michelle Slade, spokeswoman for Moneyfacts, says as well as rate hikes, providers are withdrawing competitive deals and launching new cards with higher APRs than previously seen.

“Customers who repay just the minimum will be hardest hit with an additional £408 in interest now being payable on a modest balance of £2,000,” she says.

Have you been hit by credit card rate rises? If so Moneywise wants to hear from you – email fightback@moneywise.co.uk

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