Interest rate from new credit card is high

28/10/2008

According to a leading tabloid newspaper, the Easy Shop credit card offered in conjunction with Provident Financial and Argos could end up making customers paying far more for their retail purchases than they think.

An illustrated example highlights a simple purchase of £100 could in reality cost the customer £135 over a 27 week payment duration which resembles an APR of 227 per cent.

Many industry specialists believe that as a result of the market conditions and the impact of the credit crunch lenders have tightened their lending criteria and offerings such as these may be the only option for those who are seeking a credit purchase option.

Vince Cable spokesperson for the Democrat treasury commented “A lot of people are finding it increasingly difficult to borrow from the mainstream high street banks. He further added "Many may well feel they have to fall back on things like this. There is a real risk of a very large number of people being exploited as a result."