Barclaycard has announced it is to cut interest rates on some of its products, whilst freezing rates on others. The cut will benefit almost 12 million Barclaycard customers, with 3 million customers enjoying a reduction in credit card interest rates of between 2.4 and 5 per cent.
Martyn Saville, of credit card expert Which?, said, We welcome this first step towards realistic interest rates on credit cards - this is hopefully a sign that credit card companies are finally re-entering the real world with the APR they charge their credit card customers. The Barclaycard Simplicity Visa Card has been a Which? Best Buy for everyday use for months and Barclaycard's new move is to be welcomed. We hope that other providers will follow suit and that Barclaycard will cut its rates yet further to help embattled consumers. With the Bank of England base rate now at just 1%, there is still a very long way to go.
Andrew Hagger, of Moneynet, said, Since rate cuts on credit cards have been rare over the last few months, and in some cases rates have increased, you could argue that providers now have some room for manoeuvre, considering base rate has fallen by 3.5 per cent in the last four months.





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