Halifax increase their credit card rates
March 27, 2008
Last week, Halifax informed their customers of a rate increase by as much as 5%. Some customers appealed against this decision and succeeded in getting it overturned due to their long-standing custom with the building society.
Others, have had Halifax Classic cards raised from 10.9% to 15.9% and the One cards nearly doubling from 5.9% to 10.9%.
Given the example of a £1000 balance and only repaying the minimum every month, this new move would increase payments by £44 extra in interest on each card!
Halifax’s response to this move was to say that they review customers’ rates from time to time to keep ‘in line with the market’.
This action follows hot on the heels of Egg’s decision to close 160,000 customers’ accounts.
Both these steps are further examples of how more and more lenders are tightening their lending criteria and looking to increase rates and review credit limits as a means to cut back on cheap borrowing.
Written by Peter · Filed Under News Credit Cards
Hi,
Yes but if they where making it harder, Why have they just launched a card for people with bad Credit Rating?
But then saying that it’s getting beyond Ridiculous the amount of people who ar Declined for Financial items,
I always say stick to one bank account have no credit cards pay your bills in cash at the post office, That way your spending your own money and you have no debts and no searches going on your credit report….. Yes this may mean you wont be able to gt a mortgage in the future, But hey i intend to move abroad anyway UK getting to rough and expensive to live.
Just phoned the halifax and asked if the intrest rate on a cash amount i withdrew last year can be reduced and they said nothing can be done , 29.95%pa is robbery. can i do anything without changing cards.