Average credit card purchase APR hits new high
The selection of lower rate cards has worsened and there have also been some card withdrawals, Moneyfacts said.
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Your support makes all the difference.The typical cost of making a credit card purchase outside a 0% introductory offer has reached the highest level yet on a financial information website’s records.
Between the start of June and the end of August 2021, the average purchase APR (annual percentage rate), including card fees, stood at 26%, the highest on Moneyfacts’ records which started in June 2006.
The selection of lower rate cards has worsened and there have also been some card withdrawals, Moneyfacts said.
It's important consumers stay on top of the changing market and switch where appropriate
The findings were released as households face a cost of living crunch, with multiple pressures including surging energy prices and other costs and imminent cuts to Universal Credit.
Moneyfacts said there were improvements to interest-free purchase cards, now offering 316 days at 0% on average, up from 285 days in June.
Balance transfer fees have also fallen to 2.1% on average, down from 2.28% a year ago, and the lowest since June 2018 when the average was 2.07%.
Rachel Springall, finance expert at Moneyfacts, said: “The cost of making a purchase using a credit card outside of an introductory 0% offer has reached a record high due to a combination of changes.”
She added: “As interest purchase rates increase and 0% offers fluctuate, it’s important consumers stay on top of the changing market and switch where appropriate.”