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Credit card interest rates continue to rise

Posted on 07. Apr, 2009 in General News

Despite sharp reductions in the Bank of England base rate, credit card interest rates have reached their highest level for two years.

The average interest rate charged on a credit card balance has increased by 1.1% during the past two years, even though the base rate has fallen from 5.25% to 0.5% during the same period, according to website MoneyExpert.com.

The increases will have generated an extra £712.8 million in annual income for credit card providers.

Source: Evening Standard 07-04-2009