Despite the recent interest rate cut by the Bank of England, the average rate of interest on credit cards is on the rise.
Research group Defaqto has studied the rates of some 240 credit cards and reports that since May the annual percentage rate (APR) has risen from 17.2% to 17.6%. Certain cards have seen bigger increases; a NatWest card rate has increased from 13.9% to 16.9% – thought that is still lower than the average.
I don’t have any figures for rates in store cards but bare in mind that such cards typically attract higher rates of interest. You might find that unless you clear the balance in full each month on a store card, the rate of interest outweighs any first purchase discount that you’re offered.
