Credit card rates will keep rising in 2008
Published On 31 December 2007
Lenders will try to repair the damage caused by this year's credit crunch by increasing credit card rates, an independent financial advisor has said.According to Moneyfacts, it is likely that credit card rates will "continue to creep up" in 2008, which could well have an impact on anyone hoping to transfer their debt to another provider in the new year.
Samantha Owens, head of personal finance at the firm, explained: "The credit card market has been offering really good deals and low rates for such a long time, and obviously with the credit crunch coming in, [they have] had to reduce their fees. Obviously they have to bring the money in another way.
"We've seen balance transfer fees creep up. If people are transferring their credit card balance after Christmas they need to be aware and look at the balance transfer fee, and make sure that… they take that into consideration."
Ms Owens added that credit card customers should ensure that they keep a close eye on their statements to ensure that their interest rate isn't rising every three months and that they could actually be with a cheaper provider.
Moneyfacts revealed at the beginning of November 2007 that in the preceding two months there had been 125 increases in rates and fees on various credit cards.
