Despite base rate cuts by the Bank of England, interest rates on credit cards have gone up by more than 0.5 percent over the last six months, new research has revealed.
According to comparison site, MoneyExpert.com, the average APR is now at 17.12 percent – up from 16.56 percent in November last year. Balance transfers have not come through unscathed either; the standard rate has jumped to 15.95 percent which is an increase of 0.83 percentage points in six months.
The credit crisis has resulted in hundreds of lenders raising rates and tightening their criteria. Along with credit cards, mortgages and personals loans have also been affected.
Now experts are warning that it may be more difficult for cards hoppers to continue transferring their balances as 0% deals become increasingly rarer.
“This means more of us will have to use our current credit card and if the 0% deal has expired, you'll be borrowing money at a rate of around 16 percent; be careful what you spend on the plastic because the interest will soon mount up,” said Sean Gardner of MoneyExpert.com.
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