— Armando White @ 10:45 pm — 
August 14, 2010The high rates charged on credit card debt may help to explain the banks’ return to profitability. HSBC announced a doubling in first-half profits earlier this week and Britain’s other leading banks are also expected to announce improved figures this week.
Among the rates charged by leading card issuers are 18.9pc on Virgin’s card, although there is an introductory offer of 0pc on purchases for a year. Barclaycard’s Platinum card and Tesco’s Clubcard both charge 16.9pc, with 0pc similar introductory offers for 12 and 13 months respectively.
The same rate, 16.9pc, is also charged on several cards that offer the longest 0pc balance transfer deals – including NatWest’s Platinum (16 months), First Direct Gold and Nationwide Gold (both 15 months).
Kevin Mountford of moneysupermarket.com said: “Our analysis shows there is renewed appetite among credit card providers to offer great deals [on balance transfers]. However, there is a sting in the tail. While interest-free periods may be getting longer, the rates of interest being charged once they end are also increasing.
“This makes it even more important to ensure you pay your balance off before the interest-free period ends. You also need to make sure you aren’t late making a repayment. If you are, you’ll probably forfeit the 0pc offer and start being charged interest.”
The average interest rate on cash withdrawals on credit cards has also increased, from 25.32pc in November 2008 to 26.76pc now, moneysupermarket.com said.
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1 person has left a comment
As I can see there is nothing can be done without a fee. So if you will not pay there, the banks will find a way to make you pay in another way. It seems a little tricky, but for busy people a credit card is a required tool, so anyway my opinion is to pay less everywhere than pay more but just in one place.