Lenders increased their rates on 21 different credit cards last year after customer borrowing rose by 40% in 2019. Latest figures show that the average family now owes £12,800 on credit cards, loans and car finance. Credit card firms, including Barclaycard, Virgin Money, Halifax and Lloyds, all increased interest rates on purchases in 2019, bringing the average rate to a record high of 25.1 per cent.
The highest rate for a card without an admin fee is Vanquis Bank Origin Visa, which charges 59.9 per cent (this is a credit repair card that can help users rebuild their credit score). The most costly standard card, with no fee or reward scheme, is the HSBC Classic Credit Card Visa, with a rate of 29.9 per cent.
Meanwhile, the number of interest-free balance transfer cards is at a record low. There are just 76 cards that allow customers to pay no interest for a limited period, down from 122 three years ago, according to data analysts Moneyfacts.
Source: This is Money