A MAJOR credit card provider used by more than half a million customers is hiking interest rates for some customers.
Zopa Bank, a digital challenger bank that introduced its credit card in 2020, is raising these unwelcome charges for some of its users.
When the card was first introduced, it attracted many applicants with advertised rates as low as 9.9% APR.
The APR, or annual percentage rate, is the yearly cost of borrowing on a credit card, including interest and fees.
Although the card advertised a representative APR of 34.9% (which they legally had to offer to at least 51% of applicants), many customers with good credit scores initially received the lower rate of 9.9%.
However, The Sun can reveal that Zopa Bank has now increased its lowest available APR from 9.9% to 26.6% for new customers.
They are also raising rates for some existing customers who previously benefited from rates below 26.6%, leaving some users frustrated.
One customer said in an online forum: "Just a heads up if you have a Zopa credit card as they have hiked my interest rate up 10 percentage points today from 12% to 22% - completely out of the blue
"I can't understand why they are doing this it's puzzling.
Another customer said: "Mine went up from 17% to 26.7%.
"Not that I carry a balance..."
Credit card companies often change their interest rates for various reasons, like market conditions or customer risk.
Changes can also happen individually or across the board, so don't take it personally.
If your credit card APR were to jump from 9.9% to 26.6% you'll end up paying an extra £167 in interest for every £1,000 borrowed over 12 months.
That's because at 9.9%, the interest would cost you £99, but at 26.6%, it rises to £266.
However, it's always important to note that if you consistently pay your balance in full each month, any interest rate changes won't affect you.
A spokesperson for Zopa said: "We regularly review our credit card interest rates to ensure they provide fair value to our customers.
"As part of this process, customers' rates may increase or decrease, as is the case now.
"When a customer’s rate changes, we provide at least 60 days' notice.
"Customers have the choice to opt out from this. If they do, their interest rate will stay the same and their credit card account will be closed once the balance is fully repaid.
"We don't impose a strict repayment deadline, allowing customers to pay off their balance at a reasonable pace with no impact on their credit file or any other Zopa Bank products."
If you can't afford to pay more than the minimum balance but want to avoid the added costs of interest, it could be worth shifting your debt to a balance transfer credit card.
The cards are a crucial tool for people who have racked up spending and are trying to repay, as they don't charge any interest on sums moved for set period of time.
BORROWING sounds like a simple way to help pay bills – but beware falling into debt you cannot pay back.
It's always vital to ask yourself if you actually need to borrow before committing to a new credit card, personal loan or overdraft.
If you cannot afford to pay off debt you already have, you should avoid at all costs taking on any more.
Credit card customers can put an end to paying interest for up to 32 months for a small processing fee of between 2-4% by shifting their debt to a balance transfer card.
These cards make your debt easier to pay off because money saved on interest can be entirely put towards what you owe.
However, it's important to note that you can't transfer a balance between cards from the same bank.
You should always use an eligibility calculator before applying for a balance transfer card because every credit card application leaves a mark on your credit file and can affect your credit score.
The top card available right now is from Barclaycard, offering an impressive 33 month 0% balance transfer deal with a fee of 3.45%.
Alternatively, HSBC and Tesco Bank provide strong options with 32 month 0% balance transfer deals, featuring fees ranging from 3.19% to 3.49%.
To compare all the available cards, visit price comparison websites like MoneySavingExpert's Cheap Credit Club or Compare the Market.
Once you run your details through an eligibility calculator and you've been shown that you're likely to be accepted, make a formal application.
To do this, you will need to provide your name, address and email address as well as details of your income so a provider can assess your eligibility.
You will also need to provide details of how much money you want to transfer to the new card, but you can often do this after you have been accepted.
There are several groups which can help you with your problem debts for free.
You can also find information about Debt Management Plans (DMP) and Individual Voluntary Agreements (IVA) by visiting MoneyHelper.org.uk or Gov.UK.
Speak to one of these organisations - don't be tempted to use a claims management firm.
They say they can write off lots of your debt in return for a large upfront fee.
But there are other options where you don't need to pay.
6,000.000+downloads/Free/Bengali/Version2.3.4
777 BDT IPL 2025 Sports First Deposit Bonus
