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Credit increases boost personal loans

30 December 2004

Secured personal loans look set to become even more attractive as credit card companies announce hikes in their credit rates.

Already well above the cost of personal loans credit card companies look set to follow the lead of one high street bank which yesterday announced a one per cent rise in its rate.

The Nationwide Building Society said it would increase the interest rates charged on all of the group's credit cards by one per cent.

Almost three quarters of a million existing credit card account holders, with the Classic, Cash Reward and Comic Relief cards will be affected.

About 742,000 account holders and any new customers will see the card charges change from next March.

Other providers, including Egg, the Royal Bank of Scotland, Marks & Spencer, IF and Cahoot have increased the rates payable on cards within the past four months.