Credit card customers sent urgent warning – check accounts now | Personal Finance | Finance

Millions of people with a credit card are being urged to check their accounts amid fears that lenders are increasing their interest rates. According to the Sun, some providers have hiked their interest rates by as much as 12 percentage points since 2015.

According to research provided by TotallyMoney, the average credit card representative APR was 17.9% in 2015. But this rose to 25.2% by 2025, representing an eye-watering increase of 7.3%. Alastair Douglas, chief executive of TotallyMoney, said: “While the Bank of England may have cut rates by one percentage point in the last year, credit card companies haven’t followed.

“These hikes are a timely reminder for credit card users to review their rates and explore whether switching to a cheaper deal could save them money.”

According to the research, the average customer would now be paying an extra £73 in interest for every £1,000 borrowed over a 12-month period.

Some lenders have hiked their interest rates way beyond the average, with John Lewis having raised its credit card APR by 12 percentage points from 16.9% to 28.9% in that time period.

M&S Bank has raised theirs by eight percentage points whilst lenders such as Bank of Scotland, Lloyds Bank, Nationwide, and TSB have all increased their rate by seven percentage points, climbing from 17.9% in 2015 to 24.9% by 2025.

Experts warn that spenders should make an effort to monitor how they much they spend on their credit card and ensure that if using it for everyday purchases or rewards, that the balance is paid in full.

Those unable to pay the balance off in full, should seek to move their debt to a low interest of 0% interest credit card to ease the burden.

Martyn James, consumer rights expert, told the Sun: “For people considering moving their debt for an interest-free deal with another credit card provider, there are three things to factor in: the interest-free period, the transfer fee and the APR if you can’t pay off the debt in time.”

“But those who make careful use of interest-free deals can comfortably clear all their debt quickly and without the extra cost of interest.”

He added: “Balance transfers deals are getting longer.

“You can now shift your credit card debt and cut interest costs for 33 months, taking you through to February 2028.”