Ditch these rubbish credit cards

Ditch these rubbish credit cards – NOW!

Written by Melissa Stewart on May 13, 2011 – 1:35 pm

Credit card interest rates have hit a 13 year high; is it time for you to ditch and switch?

13. Unlucky for some, but not the credit card industry.

That’s because credit card interest rates are at their highest levels in 13 years, soaring 2% in the past four months to 19.1%. Figures from moneyfacts.co.uk show that, despite the Bank of England base remaining at a record low of 0.5%, no fewer than 18 credit cards have had their rates upped since the turn of the year.

So to help you ensure that you’re getting the best possible deal on your credit card, I’m going to outline some real rip-off accounts and show you where to find the cheapest deals…

High interest store cards are a pet hate here at lovemoney.com. Yes, 20% off your purchase just to take out another credit card may seem like a good deal initially – but you’ll be regretting saying yes to that charming cashier when your first bill drops through the letter box and you see the extortionate interest rate you’ve been paying.

Just look at some of these huge APRs…

Granted if you always pay off your bill in full every month then you won’t have to worry about these extortionate interest rates at all. But even if you do always clear your credit card burden before interest starts to accrue, there’s still no excuse to use a store card. Instead, get hold of a cashback card, which will allow you to earn as you spend. American Express is currently offering 5% cashback (up to a maximum of £100) for three months and 1.25% after that on their Platinum card.

And huge APRs aren’t the only reason why you should avoid store cards; some of them have an even nastier sting in the tail. Find out more by reading Why the worst credit cards just got worse.

Whether debit or credit cards, I really struggle to get my head round why anyone would want to pay for the privilege of holding an account. Especially when there are so many great deals around that don’t charge a fee and some accounts that will even pay you for your custom.

Take a look at some of these fee charging accounts…

Ludicrous!

In my book, anyone that takes out an account that charges should have a very good and well calculated reason for doing so. For example, if you’re a frequent flyer who spends a lot on credit but always clears the bill every month then the air miles you stand to earn by using the BA Amex Premium card may just outweigh the £150 annual fee.

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