Credit card companies offer low interest rates to attract customers

June 10, 2010 - PRLog -- According to Moneyfacts.co.uk., In the past few months the credit market has bounced back and the card providers have once again started to show their trust in people and are back in business.

The number of cards charging 0% interest on new purchases for a minimum of 10 months have increased to 450% since the last year . During the same period a growth of  20% was recorded in the number of cards offering 0% interest on balance transfer for at least 10 months.

Card providers like American Express, Barclay card, Egg, Nat West, Royal Bank of Scotland and Sainsbury's Finance have also launched competitive reward schemes.

The average credit card rate today standing is 18.7% APR which shows that the interest rates charged on cards is still increasing.
From the beginning of the year the following providers have increased the interest rates for new customers:
Barclay card – interest increased by 2.0%

Capital One Bank – interest raised by 5 %

Egg - interest rate raised by 1.0%

MBNA Europe Bank - interest rate raised by 1.0%

Sygma Bank - interest rate raised by 2.0%

Spokesperson for Moneyfacts.co.uk, Michelle Slade commented:

“Due to recession companies offering credit cards stopped offering cards to new customers. Only a few competitive deals were available but then only very few customers were eligible for them.”

“After proper market research the credit card companies are ready and are back in business. The industry is again very competitive and the credit card companies are eagerly trying to attract new customer.”

“Customers interested in new purchase can find credit cards charging 0% interest for at least an year and the one willing to payback their exsisting debts can find deals charging 0% interest for at least 16 months.”

“Most of the card providers earn revenue from negative order of repayments. However following the OFT investigation the card providers can amend it until the end of the year.”

“MBNA Europe bank was the first card provider to respond to the announcement of positive repayment order. It joined the nationwide BS, SAGA and the co-operative banks in this issue. How ever as a result the interest charged on the credit cards is bound to increase as the card providers are compelled to follow the positive repayment order.”


http://www.ask4loan.co.uk/credit-cards/