Recently the Prime Minister, Gordon Brown, and the Chancellor, Alistair Darling, announced that the base rate in the UK was being cut by 0.5% in a surprise move a full day ahead of the scheduled Monetary Policy Committee meeting, which is where the interest rate is usually changed.

This move was also mirrored by five other central banks around the globe as well as the Bank of England, as the powers that be tried to boost the economy, minimise the impact of recession, and revive consumer confidence. As a result of this surprise rate cut many borrowers could see their variable borrowing interest rates cut, and those looking for a good deal on a credit card could find an increasing number of cards with competitive rates of interest coming onto the market.

However, industry officials have warned that not all cardholders or those looking for a credit card will benefit, as some credit card providers may not make any changes to their rates even though the base rate has been cut by 0.5%. Over the past year the base rate has been reduced on a number of occasions, each by 0.25%. However, despite these cuts research has shown that some card providers have actually increased their rates.

Some officials have suggested that if your card rate is too high and you think that it is not competitive given the fact that interest rates have fallen it is well worth contacting your card provider if you have a good credit history, as some will be willing to lower the rate upon request. For those looking for a new credit card it is still a case of comparing credit cards from a range of providers, as some providers will pass on the base rate cut on their financial products whereas others may not.

You should also remember, however, that even if lenders do pass on the base rate cut to borrowers there are still many other fees and charges that you need to consider when it comes to your credit card, such as cash transaction fees and foreign transaction fees. This is something else that you need to bear in mind when it comes to getting a competitive credit card.

The competition between 0% balance transfer credit cards is also still high and you can now get deals lasting for up to 16 months.

People who have a poor credit history, may have to look at getting a bad credit rating credit card instead though, and building up their credit history before they can get a cheaper credit card deal.

Article Source: http://www.articleset.com