Top Credit Card News

Derin Clark

Derin Clark

Online Reporter
Published: 11/10/2019

Credit card spending is up by 6.4% year-on-year, with a total of £17.9bn spent during July 2019 alone, recent data from UK Finance reveals.

According to UK Finance’s Card Spending update, there were 314 million credit card transactions in July 2019, which resulted in £17.9bn being spent and a 6.4% increase on the same period a year earlier. At the same time, the annual growth rate in outstanding balances on credit cards stood at 3.7% in July 2019, which a huge drop from its recent peak of 8.3% at the start of 2018. This suggests that although consumers are using their credit cards more, they are becoming better at managing their credit card debts.

Tesco Bank has just reduced the introductory terms on two of its credit cards: Clubcard Credit Card Purchases has cut the introductory term from 26 to 24 months and Clubcard 0% Balance Transfer Fee Mastercard reduced from 18 months to 16 months. The Bank has also increased the balance transfer fee to 1.49% (was 0.85%) on its 15 Month All Round Clubcard Credit Card Mastercard.

The changes from Tesco Bank comes after the news last week that credit card borrowing has reached record highs. Credit card providers have increased their interest rates between June and September, reaching an average APR of 24.7% – the highest recorded in the past 13 years.

Michelle Monck, finance expert at Moneyfacts.co.uk said “The recent increases in credit card interest rates make it even more important that borrowers transfer to a 0% deal if they have a rolling monthly credit card balance that is incurring interest. Customers should make a plan to clear their balance before the 0% transfer period ends or, if this is not possible, be ready to move their balance again before interest is charged.

Card customers should look to get a 0% deal now as in times of economic uncertainty credit card providers could make their lending criteria more stringent and reduce the potential for borrowers to switch their balances in the future."

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. This is bad news for the many people who currently had debts on their credit cards, making it more expensive now to use this method of borrowing if consumers aren’t already on a 0% interest deal.

The average APR now sits at 24.7% – its highest point since Moneyfacts started to maintain records some 13 years ago. This figure has been steadily rising since September 2017, when it stood at 22.9%. At the same time, the underlying purchase rate (which does not include a card fee) rose to an all-time high of 22.528% – again, a rise of some 1.536% since September 2017.

Two-thirds (67%) of parents complained about being ripped off during their last trip abroad, with unforeseen debit charges the biggest complaint, a survey from Post Office Travel Money reveals.

A third of parents who took part in the survey revealed that they were caught out by extra charges averaging £120 on their last holiday. Along with charges for paying on cards while abroad, parents also highlighted the high cost of entry to attractions and excursions, restaurant service charges, meal and drink prices in restaurant and bars, cost of transport in destination and children’s beach extras as adding extra unforeseen costs to their holiday.

With the summer holidays here, the next few weeks can prove and expensive time for parents who often have to pay for extra childcare costs or spend money on keeping children entertained during the school break. Ideally, parents will have planned for the holidays and have a savings fund ready to cover the extra costs or have already factored the additional spend into their budgets, but credit cards can also prove a useful way to access money in the short-term.

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Credit card spending increases year-on-year

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Credit card spending is up by 6.4% year-on-year, with a total of £17.9bn spent during July 2019 alone, recent data from UK Finance reveals

Credit card spending is up by 6.4% year-on-year, with a total of £17.9bn spent during July 2019 alone, recent data from UK Finance reveals

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Tesco Bank has just reduced the introductory terms on two of its credit cards and credit card providers have increased their interest rates between June and September, reaching an average APR of 24.7% – the highest recorded in the past 13 years.

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Two-thirds (67%) of parents complained about being ripped off during their last trip abroad, with unforeseen debit charges the biggest complaint

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