United Kingdom Credit Cards
United Kingdom is developed country, which is also known as England. Population of United Kingdom is about 61.2 million. GDP of UK is 2,149,000,000,000 (USD). United Kingdom is the founder of whole banking system in the world. The very first bank of the world was Royal Bank Of Scotland (RBS).
So it is obvious that the Banking sector of UK is one of the most developed banking systems of the world. It needs to be reform but the oldest banking sector of the world is a strong banking setup that is the up lifter of the economy of the United Kingdom. It has adopted so many instruments from other banking sectors as well. So that is the reason of launching Credit Cards in United Kingdom.
Increasing Number of Customers
Credit card has become a popular credit instrument. It is the easiest and safest mode of payment that is why it is widely used for business purposes as well. Card issuers have attained a large number of customers from last year because of not charging any interest on purchases for 10 months. So popularity of Credit Cards in United Kingdom and number of customers increased up to 450%.
Interest Rate of Different Card Providers
There are several companies, which are providing United Kingdom Credit Cards to their customers. These are Visa, American Express, Barclay Card, Master Card, Nat West, Egg and RBS. But the problem is this that interest rate on these cards is increasing continuously. Interest rate of an average card is 18.7%. Some card providers have increased the interest rate at the start of this year for their new cardholders.
Interest rate on Barclay card is increased by 2%. Egg has increased the rate by 1% and the average of other providers is 2.5%-5%. These increasing rates of interest are because of current recession, which has hit the companies badly. Few companies are offering value added deals but the policies are too strict now so less number of customers gets success in this regard. But still companies are comfortable to work in the current situation.
United Kingdom Credit Cards have increased the number of customers who rely heavily on credit instruments. Though there is a very tough competition in the credit card market but providers are efficiently trying to attract new customers to run their business. Many companies are offering interest free cards for 1 year to the new customers. There are also other facilities provided by the United Kingdom Credit Cards. Some are offering negative repayment order but there are also some providers like MBNA Europe Bank, which is providing positive repayment order on credit cards.