Credit cards charging the highest rates for 13 years

CREDIT card interest rates have soared this year, it was revealed yesterday.

Since the start of the year, 18 credit cards have hiked the rates they charge customers, compared to just four in the same period last year.

The average interest rate on plastic has hit a 13-year high of 19.1 per cent, the website Moneyfacts calculated.

The hikes have coincided with fresh Office of Fair Trading regulations and the payment protection insurance ruling, both of which have dented revenue levels.

““It is unlikely we have seen the last of the increases and we expect more providers to follow suit,” said Michelle Slade of Moneyfacts. “At the same, time, customers are now being offered the longest ever zero per cent balance transfer and introductory purchase deals ever seen,” she added.