Credit card holders 'should challenge rate increases'
Credit card holders should ask for an explanation if their rates go up, according to a senior researcher at the consumer body Which?.
Credit card holders 'should challenge rate increases'”
Researcher Martyn Saville said that credit card holders should challenge any increases and if the credit card provider cannot offer a justification, holders should ask them to put it back down to the usual rate.
Mr Saville warned that people may have no choice but to pay high rates at the moment because it is harder to get new credit cards.
However, credit card companies will have to become more competitive as soon as house prices start to recover and loans free up again, he continued.
For those struggling to obtain affordable lending, there are good options, Mr Saville advised.
"Credit unions are always a good option, because they will often lend to people who maybe can't access mainstream lending," the senior researcher continued.
Mr Saville's comments come as research from Moneyfacts.co.uk revealed that the average credit card purchase rate is 18.1 per cent this month, up from 16.3 per cent two years ago.
Written by Sam Dawson ©
