Are credit cards being crunched?
16 July 2008
A marked increase in the number of credit cards increasing their charges and rates has been noticed since April, according to Moneyfacts.
The company notes that until recently, the plastic card market had seemed to carry on unaffected by the ongoing effects of the credit crunch, with some lenders amending their rates and other extending introductory deal dates.
According to data from the firm, alterations included 19 purchase rate increases, 14 cash rates being upped and eight cash withdrawal fee rises.
"Some of the recent changes could perhaps be justified by lenders' increased risk and cost control as a result of the credit crunch.
"Others, such as reducing the minimum repayment, could just be seen as squeezing more profit from those who are already feeling the pinch," the independent financial information provider notes.
Meanwhile, a recent study by Zurich suggested that only 29 per cent of people have reviewed their monetary situation despite the current uncertain economic climate.
