Card rates ‘higher than in 2006′
The rates on credit cards have risen since the last time the Bank of England base rate was at five per cent, it has been claimed.
Defaqto.com said that the average interest on these cards, along with balance transfer fees, are more expensive in comparison with December 2006.
As a result, stated principal consultant of banking at the organisation David Black, service providers are likely to be the overall winners of the loans trend.
"Credit card rates generally have increased to the detriment of the consumer but it remains the case that the industry offers its best deals to new customers," he commented.
He added that fees on balance transfers have gone up "relentlessly" and that there is no cap on what banks can charge consumers.
Furthermore, he noted, most service providers have adopted a set of more stringent lending criteria in the wake of the credit crunch.
This week, uSwitch.com argued that firms are giving credit to people without checking their salaries.
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