Halifax is known among credit card users to be very attentive with their customers. This lead to changes on how it receives interest from the use of its credit cards. The main feature represents cost of borrowing.
The good news is that Halifax made it possible for customers to have their interest rate directly connected to the normal rate used by the Bank of England. Customers will be more aware of the manner in which the rates are being modified. It also means that the annual rate will consist of both personal card rate and the bank rate.
Ken Stannard, who is the leading the credit card department at Halifax believes that this measure will improve the way in which customers see interest rates. He said: “This is straightforward and fair pricing, which will give our customers far greater transparency and control over their interest rates.”
The installment of just one simple and easy to comprehend rate will make people understand what they have and what has changed.
“Our customers tell us that one, simple rate makes it easier to understand their credit card, and they want to better understand how and why their interest rates may change,” added Mr. Stannard.
The Telegraph has revealed that an average purchase rate calculated for this period registered 18.1%, while 3 years ago it consisted of only 16.8%, at the same time when the base rate reached 5%.
Customers will be more than pleased to see that there will be only one interest rate for all their transactions, especially for shopping and money withdrawals.
The new system is much simpler than the way it used to be, but one drawback is known to be the Bank of England’s base rate, which will surely rise in the next few months. An overall look admits the fact that this change is for the better, but small changes can lead people to think that understanding isn’t the same as not being affected by a growing rate.