The latest quarterly Moneyfacts UK Credit Card Trends Treasury Report, which studies the UK personal finance market (Unsecured Personal Loans, Credit Cards and Overdrafts) and is due to be published later this week, reveals a significant rise the average APR on credit cards over the past quarter (June to August).
Indeed, the average APR hit 24.7% this month, its highest point since records began*. At the same time, the underlining purchase rate (which does not include a card fee) rose to an all-time high of 22.528% – so customers may now be incurring higher interest charges on purchases outside of an interest-free offer.
|Credit card market analysis|
|Sep 2017||Sep 2018||Jun 2019||Sep 2019|
|Average credit card purchase APR||22.9%||23.4%||24.1%||24.7%|
|Average credit card purchase pa rate||20.992%||21.365%||22.046%||22.528%|
|Source: Moneyfacts Treasury Reports|
Rachel Springall, Finance Expert at Moneyfacts said, “Consumers who turn to credit cards for their everyday purchases will find that the cost to borrow is starting to rise, as the most lucrative low rate cards have worsened. In fact, over the past quarter, we said goodbye to the lowest rate purchase credit card on the market and have seen rates increase on these lucrative offers.”