Is your credit card provider giving you a fair deal?

While the Bank of England base rate fell over the past 12 months, most credit card companies put their rates up or tightened their repayment terms, according to a report from consumer watchdog Which?

The report revealed that 28 credit card providers, including Barclaycard, Egg and Sainsburys had taken steps to decrease the value of their offerings, either by upping interest rates and other charges, reducing the number of interest-free days, or reducing the timescale before payment is required.

While credit card rates were found to have risen by an average of 0.5%, Mint, NatWest and Royal Bank of Scotland were all found to have made considerably higher hikes of 4%. Average balance transfer fees have also risen, with Ulster Bank introducing a transfer fee of 2.9% to its introductory offer and increasing its introductory balance transfer rate from 0% to 4.95% on two credit cards.

Other companies, such as Egg, have left their headline APR unchanged to attract new customers, but put rates up for many existing customers, suggesting that shopping around may be the best way to keep credit card charges low.

Martyn Hocking, editor, Which? Money, said:

“At a time when we’re all feeling the pinch, it’s hugely disappointing that credit card companies are choosing to put the squeeze on borrowers more than ever. With interest rates so low, it is time for credit card providers to enter the real world. They need to make credit cheaper and their charges more transparent and fair, rather than making it harder than ever for people to make ends meet and pay back their debts.”

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