Credit cards come with fees, warns Defaqto

Credit card deals such as zero per cent on balance transfers may be a good deal for some, but borrowers should make sure they are aware of the charges.

At least this is the advice of Defaqto, who warns that these transfers are usually charged at between two and three per cent, with no cap on the maximum fee payable.

Also, lenders often pay off cheapest debts first before paying for items which incur higher interest rates, it warns, so borrowers should not use their new card for purchases.

Customers who pay their balance late or go over their credit limit may be charged an average fee of £12, according to the firm, adding that there are also associated costs for using it abroad or withdrawing money with it.

“Credit is getting harder to obtain nowadays but this should not deter existing customers from checking that their credit card still offers the best deal,” commented David Black, Defaqto’s principal consultant for banking.

At the beginning of the month, Credit Action stated that the average credit card interest rate stood at 17.77 per cent.

© Adfero Ltd

Leave a Reply

Your email address will not be published. Required fields are marked *