Consumers warned about 'honeymoon traps' on credit cards
31 March 2003
Credit card firm Capital One has revealed that there are now 15 credit card issuers offering 0 per cent as an introductory rate on purchases.
However, the company warns that once the special offer finishes cardholders can be left with standard rates as high as 17.9 per cent p.a.
Of the 15 card issuers surveyed, the average rate once the 'honeymoon period' is over is 15.7 per cent. Seven of the companies charge more than that and four of these hit consumers with a huge 17.9 per cent.
However, if cardholders choose carefully they could save themselves pounds over the 12-month period following the expiry rate.
Rob Habgood of Capital One explained, 'People need to be aware of the long-term rates their 0 per cent introductions 'go-to' after the initial period is over. Many can be faced with an uncompetitive rate in the long term.'