CREDIT CARDS
New Halifax Credit Card Pricing Revealed
Halifax leads the market by providing greater transparency for its customers as it changes its interest rates on credit cards.
The aim is to make it easier for customers to manage the cost of borrowing. The three key changes Halifax is introducing are:
- One single personal rate which is specific to individual customers and how they use their card.
- Customers’ interest rate will be linked to the Bank of England base rate – providing better clarity over how the rates change.
- Customers’ annual interest rate will be made up of the single personal rate plus the Bank of England base rate.
The highstreet bank has also outlined circumstances when it may reprice a customer’s personal rate in the future, providing clear reasons why this rate has changed so customers can take control of their account.
“This is straightforward and fair pricing, which will give our customers far greater transparency and control over their interest rates,” said Ken Stannard, Halifax director for credit cards.
“Our customers tell us that one, simple rate makes it easier to understand their credit card, and they want to better understand how and why their interest rates may change.”
According to the Telegraph however, this new move will see customers pay more for borrowing as their personal rate rises in line with the Bank of England’s base rate – which can only go up, and this is expected to rise sooner rather than later.
They show the average purchase rate today on a credit card is 18.1 percent compared to three years ago when it stood at 16.8 percent when the base rate was 5 percent.
“If you pay your card off in full each month then this isn’t an issue, but for those already struggling, it looks like higher borrowing costs are just around the corner,” said Andrew Hagger, of Moneynet, personal finance website, to the Telegraph.
Tags: bad credit credit cards, bank account, BANK ACCOUNTS, bank cards, basic bank accounts, best credit cards, best credit cards for bad credit history, Card One Banking, charity credit cards, compare credit cards, compare prepaid cards, credit cards online, free travel money cards, Halifax Credit Card, lowest credit card rate