The last two months have seen a significant rise in credit card fees and rates. The news came in a survey by Moneyfacts.co.uk, the financial information provider. According to Moneyfacts, there have been increases in over 125 separate fees and rates, hitting a number of credit card users. Those suffering the most have been people taking out cash on their cards. Balance transfer fees and charges for using cards abroad have also registered steep rises in costs. Some 69 card companies have pushed up fees for cash withdrawals, with certain charges now as much as 3 per cent of the total sum taken out. Additionally, 18 cards have raised foreign usage charges and 10 have increased balance transfer fees. Not all card users may be aware of the increases since headline purchase rates have remained more or less stable. There has also been a rise in the number of card applicants who are being rejected by providers. MoneyExpert.com, the comparison site, reported that as many as 10 per cent of all applicants are now being turned down. Most who have been refused cards tend to be younger and with poorer credit ratings. Esther James, credit card analyst at Moneyfacts, said: “It seems as if the credit crunch is beginning to cause credit card chaos. One hundred and twenty five fee and rate increases inside two months is quite staggering.” Ms James added: “These fee and rate increases are less in the public view, and often tucked away in lengthy terms and conditions. However they can still make a substantial increase to the cost of using your card.” Date:6 November 2007
Content by: Made Simple Group
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