Nationwide to increase credit card interest rates by up to 2%

Nationwide Building Society has announced that it will be increasing the interest rate charges on its Gold credit card and its Classic credit card by up to 2%.

The new interest rate charges will come into effect on 6 May 2009.

The Gold card will see its interest rate increase from 15.9% to 16.9% whilst that on the Classic credit card will increase from 17.9% to 19.9%.

Nationwide will be dispensing with the 0% on balance transfers currently on offer. Instead there will be a 3% charge on all balance transfers, with a minimum fee of £5.

Many people have made a switch to Nationwide credit cards because of their commission free purchases abroad offer. This will continue.

However, Nationwide currently absorb costs incurred on behalf of their customers from their card scheme provider, including Visa. From 6 May such charges, on both debit and credit cards, will be passed on to customers.

Nationwide points out that it continues to offer a good range of features on its credit cards, including free 12 month extended warrenty on selected gas and electrical goods and the Nationwide Fraud Watch scheme to help protect customers against credit card fraud.