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Credit card rates hit record high

by LLB Editor September 18, 2019

written by LLB Editor 18^th Sep 19 8:00 am

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.”