Using a credit card has become progressively more expensive in England over the past four years. According to a report by Defagto, an independent financial research company, despite lower base rates, the average credit card APR has increased by 16.6% since July of 2007. David Black, Defaqto’s Insight Analyst for Banking said that credit cards have been harder to obtain over the last few years especially if your credit rating isn’t up to par. So, more consumers are settling on a card with a higher rate. He said that there are still plenty of good deals out there for those with good ratings but you really have to do the research and find the best deal possible.
For many, the global recession has had devastating consequences on their financial lives. More cardholders have been left with no choice but to make significant cutbacks or take out a line of credit in order to make ends meet. Research by AXA revealed that one in four consumers admitted to having used their savings in the last quarter to balance their budget but sooner or later savings are bound to run out. In such hard economic times it’s easy to see how some may be tempted to only make minimum payments on their card but it’s important to note that this can actually hurt your credit and lead to higher rates down the line. If you have a credit card with a high interest rate it is imperative that you pay off the balance in full at the end of every month. If you can do this for a while you will see some real improvement in your credit score and will be able to qualify for a cheaper card.
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