credit card icon

Credit Card News

Top Credit Card News

news icon
The best 0% purchase credit cards
Derin Clark

Derin Clark

Online Reporter
Published: 01/05/2020

A 0% purchase credit card can be a good option for those wanting to borrow a small amount of money and who will be able to pay back the full amount within the interest-free term. While some banks have cut their interest-free terms on 0% purchase credit cards in the last month, there are still some highly competitive deals available.

Here we take a look at some of the best 0% purchase credit card deals available in the charts.

Read More
news icon
Credit card borrowers hit by higher minimum repayments

A number of high street credit card lenders have reduced interest-free terms, withdrawn products and increased minimum monthly repayment fees within the last week.

Sainsbury’s Bank’s Dual Offer Credit Card Mastercard previously offered a chart-topping 0% interest term of 27 months, has now reduced its interest-free term to 26 months. Sainsbury’s Bank has also reduced the interest-free term on its Balance Transfer Credit Card Mastercard from 29 months to 28 months, while also increasing the balance transfer fee to 3.00% from 2.74%.

Meanwhile, Tesco Bank reduced the interest-free term on balance transfers on its Clubcard Credit Card for 28 Months Balance Transfer Mastercard from 28 months to 26 months and renamed the card to reflect the new interest-free term, while also removing the 0% purchase term on the card, which was previously three months, and reducing the 0% money transfer term to 12 months from 28 months. Tesco Bank has also temporarily withdrawn its 12 Month All Round Clubcard Credit Card Mastercard, 15 Month All Round Clubcard Credit Card Mastercard and its Clubcard Credit Card with Low APR Mastercard.

Read More
news icon
FCA suspends credit card persistent debt rules due to concerns of Covid-19 on finances

The Financial Conduct Authority (FCA) has announced that it is suspending banks’ obligation to suspend the credit cards of those in persistent debt who have not responded to their lender’s communications about their debt due to the concern of the Covid-19 outbreak on consumer’s finances.

The credit card persistent debt rules, which were starting to come into effect, would have given banks the ability to suspend credit cards held by customers who were in persistent debt. While the rule will still stand, the FCA has stated that customers will have until 1 October 2020 to respond to their bank’s communications about their persistent credit card debt. As a result of this, firms are not obliged to suspend customers’ credit card accounts due to persistent debt, even if they have already received communication from their bank about this.

Commenting on this announcement by the FCA, Eleanor Williams, finance expert at Moneyfacts.co.uk, said: “Those who may have already been finding it difficult to keep up with their minimum credit card payments before the Covid-19 outbreak may find some comfort in the FCA’s decision to suspend its credit card persistent debt rules. If anyone is worried about managing their finances in this difficult time, they should consider speaking with an advisory service and contacting their finance provider to discuss possible solutions to any concerns as early as possible.”

Read More
news icon
Five of the best balance transfer credit cards

Consumers looking to spring clean their finances by managing their credit card debt may want to consider applying for a 0% balance transfer credit card.

0% balance transfer credit cards can be a cost-effective way for those with credit card debt to repay the money they owe. These credit cards allow borrowers to transfer their existing credit card debt to the new card and offer an interest-free period in which they can pay off the full amount. This helps to clear the debt quicker as repayments do not need to factor in additional interest costs, as long as the full amount is repaid within the interest-free period. Saying this, many 0% balance transfer credit cards charge a transfer fee, which makes the total amount to be repaid higher than the existing credit card debt.

Borrowers should also be aware that an application for a 0% balance transfer credit card is subject to a credit check, which means those with a low credit rating might struggle to get approval, especially on the top deals.

For those considering a 0% balance transfer credit card, here we’ve looked at the five best deals available in the charts today.

Read More
news icon
Lenders told to review how they approach customers in persistent debt

Fears that those in credit card debt could have their credit cards cancelled without warning were put at ease with this week’s announcement from the Financial Conduct Authority (FCA) that lenders needed to review their approach to persistent debt customers.

The FCA, a finance industry regulator, has instructed lenders to help those in a cycle of debt for at least three years by agreeing plans with customers to pay off their debts. As part of this requirement, lenders have been contacting customers to urge them to discuss repayment plans with their lender. However, it was feared that those in persistent debt could find that their credit card had been cancelled without warning, even if they had made repayment plans with their lender.

This week’s announcement from the FCA has stated that lenders would not be allowed to suspend a credit card without having an objectively justifiable reason, with the regulator highlighting concerns that lenders may cancel or suspend credit cards for everyone in persistent debt. In addition to this, the FCA has revealed concerns that customers may not respond to letters from their credit card provider, in which case it urged lenders to encourage customers to speak with them to discuss potential repayment plans and help find solutions if customers cannot afford the proposed repayments.

Commenting on this week’s announcement, Jonathan Davidson, executive director of Supervision for Retail and Authorisations at the FCA, said: “Under our rules, firms must help customers to reduce the level of debt they have on their credit card more quickly. If a customer cannot afford the firm’s proposals for how to do this, the firm must offer forbearance, potentially including reducing, waiving or cancelling any interest, fees or charges.

“My advice to consumers is don’t bury your head in the sand. If you can’t afford to meet the repayment schedule that the credit card firm is suggesting, don’t be afraid to tell them. If we find firms are not offering their customers the appropriate level of help, we will not hesitate to take action.

“If the firms do this right, we estimate that this could save customers up to £1.3bn a year in lower interest charges.”

Rachel Springall, finance expert at Moneyfacts.co.uk, added: “The FCA may well have thrown struggling credit card borrowers a lifeline today, as its warning could stop lenders from cancelling a credit card without a justifiable reason.

“There may well be borrowers out there who are keeping up with the minimum repayments but are unable to pay more each month, and these borrowers need support.

“Since the persistent debt proposals were announced, credit card providers have cut down the length of interest-free balance transfer offers, of which there is a record low amount of deals available now. Once the longest offer was for a 43-month interest-free balance term, while the longest today is just 29 months, a significant difference.

“Hopefully this interjection from the FCA will protect vulnerable consumers who need more guidance on ways to reduce their debts. However, if card providers are forced to reduce or abandon interest charges on debts, then this could impact the range of credit card deals that they are prepared to offer overall. It will be interesting to see what credit card providers will do in the months to come."

Read More

Recent News

news icon
Competition increases in balance transfer credit card chart

21st January 2020

Borrowers wanting to transfer the balance on their credit cards will be pleased to see that Barclaycard and Sainsbury’s Bank have made their 0% balance transfer cards more competitive

Borrowers wanting to transfer the balance on their credit cards will be pleased to see competition in this chart increase

Read More
news icon
Consumers spending less on credit cards

16th January 2020

Figures released by UK Finance today show that consumers have reduced the amount spent on credit cards year-on-year, while debit card spending has increased

Figures released by UK Finance today show that consumers have reduced the amount spent on credit cards year-on-year, while debit card spending has increased

Read More
news icon
The best interest-free balance transfer cards

7th January 2020

With many consumers facing high credit card bills after the festive period, along with the news that interest-free balance transfers deals are at a record low, we’ve analysed whether there are any 0% transfer deals worth applying for and how to choose the best one

With many consumers facing high credit card bills after the festive period, along with the news that interest-free balance transfers deals are at a record low,

Read More
news icon
Interest-free credit card deals at a record low

6th January 2020

Consumers relying on interest-free balance transfer cards to pay off their credit card debt will be disappointed to find that the number of interest-free balance transfer deals have fallen to the lowest January level since records began in 2007

Consumers relying on interest-free balance transfer cards to pay off their credit card debt will be disappointed to find that the number of interest-free balance transfer deals have fallen to the lowest January level since records began in 2007

Read More

Search News

(showing 1 to 4 of 88) (showing 1 to 3 of 88) (showing 1 to 4 of 88)

Most Popular Credit Card News

news icon
FCA suspends credit card persistent debt rules due to concerns of Covid-19 on finances

19th March 2020

The Financial Conduct Authority (FCA) has announced that it is suspending banks’ obligation to suspend the credit cards of those in persistent debt

The Financial Conduct Authority (FCA) has announced that it is suspending banks’ obligation to suspend the credit cards of those in persistent debt

Read More
news icon
The best 0% purchase credit cards

1st May 2020

A 0% purchase credit card can be a good option for those wanting to borrow a small amount of money and who will be able to pay back the full amount within the interest-free term

A 0% purchase credit card can be a good option for those wanting to borrow a small amount of money and who will be able to pay back the full amount within the interest-free term

Read More
news icon
Credit card APR hits record high

17th September 2019

Recent Moneyfacts research has revealed that there has been a significant rise in the average APR on credit cards in the period from June to August this year.

Recent Moneyfacts research has revealed that there has been a significant rise in the average APR on credit cards in the period from June to August this year.

Read More
news icon
Five of the best balance transfer credit cards

5th March 2020

Consumers looking to spring clean their finances by managing their credit card debt may want to consider applying for a 0% balance transfer credit card

Consumers looking to spring clean their finances by managing their credit card debt may want to consider applying for a 0% balance transfer credit card

Read More

More Money and Finance News

Get our weekly newsletter

Weekend Moneyfacts is available free by email to all Moneyfacts.co.uk users.

Please send me Weekend Moneyfacts, Savers Friend and selected third-party offers.

Cookies

Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy