Nice little earner

  Dragon_Heart 01:55 12 Sep 2010

The media have finally (?) woken up to the fact that whilst the Bank Of England’s has kept the minimum lending rate at 0.5% for a record period of time Credit Card companies have INCREASED their rates from about 17% to 24 or even 27% !

What gives you may ask ?

Well they say their interest rates are not only based upon the lending rate but as people cut back on their spending they lose revenue ( profits ) plus they also, in these ‘poor’ economic times, get more bad depts. It may be poor for the rest of us but they counter their loss in profits by increasing the interest payments of their customers, just like the councils do.

I cannot think of many companies who can trade this way.

Wonder what he at No 11 will do about it ? 0%

Del Boy would be proud :-)

  zzzz999 06:31 12 Sep 2010

shop around, the lack of customers has meant some companies are looking to buy market share.

  morddwyd 07:37 12 Sep 2010

"I cannot think of many companies who can trade this way."

Insurance companies certainly do. Uninsured and fraudulent drivers are reckoned to cost the rest of us £40pa on our premiums.

And do you really think that Tesco cover the cost of shoplifting by reducing their profit, rather than by increasing prices?

Like Rick'scafe says, it's market share.

  Kevscar1 10:12 12 Sep 2010

Yes be like me, don't use them.

  Bingalau 10:20 12 Sep 2010

I only ever use a debit card. There is normally no charge for doing so. Saves me carrying huge wads of cash. If I mislay it I cancel ASAP. So far no problems but I did mislay it once, my wife found it in her handbag a couple of days later. I had passed it to her for safekeeping whilst I did something or other. We both forgot about it. (It's an age related thing).

  jack 10:26 12 Sep 2010

Simple remedy - Don't Pay it
Clear the Card as you go.
You after all get between 30 to 60 days to sort yourself out.

  lotvic 12:01 12 Sep 2010

As my old dad advised me......
Weekly Income £1, Weekly spend 19/6d = contentment
Weekly Income £1, Weekly spend £1.6d = misery

  GANDALF <|:-)> 12:11 12 Sep 2010

'.....Weekly spend £1.6d = misery'...he plagarised that from Mr Micawber ;-))


  spuds 13:31 12 Sep 2010

When the bankers overspent, it was bail-out time with promises and conditions. Pity the rules were not adhered to?.

I notice one credit card company is even advertising for low credit rated people. Their rate is stated at 34%, which I suppose is better than some!.

  BT 17:06 12 Sep 2010

I have one Credit Card with just a 6.9% interest rate and its also the one with the highest Credit Limit.

I use my cards to manage my money and for convenience, not to spend that which I don't have. Like Jack says I clear my cards every month so they don't cost me anything. I have on a couple of occasions spread them over 2 or 3 months when making a major purchase, for convenience sake, but this is a rare exception.

  spuds 18:09 12 Sep 2010

Referring to credit and perhaps some store cards, it can be a windfall break if you hold the right card, because some can provide 'interest free' options or cash-back on some purchases, so it doe's pay to be selective. A typical example can be an Argos card with options of 3 to 9 month interest free payments on slightly higher priced items.

I notice that some credit card companies have stopped their practice of cancelling agreements on good payers. Perhaps they have had a feeling guilty bout?.

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