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3 September 2007
Many credit card users have been attracted to the low rate of interest that was being offered on the American Express BMW credit card, which was 9.9% APR – far lower than many of its competitors.
However, the credit card giant has decided to increase this rate by a whopping seven percent, taking it to 16.9%. The American Express Mini credit card deal has also been changed.
The interest rate hike took place at the end of August, and it’s now felt that many customers will lose interest in the product due to the card becoming less competitive.
Lyndsey Burton, director of Credit-Card-Comparison-Online.co.uk stated: "The very low 9.9% p.a. standard interest rate on purchases made the American Express BMW credit card an attractive choice for anyone looking for a cheap credit card for long-term use, with the added bonus of a BMW branded reward scheme."
"However, since the recent interest rise on this card - and also on the Mini version – the only remaining selling point of these cards is their reward schemes – which, offering only point-based prize draws, are still beaten in the listings by cards such as the GM Card (in association with Vauxhall Motors) which offers actual money-off a new car and has won various mentions as the UK’s best credit card reward scheme – it’s certainly the highest paying."
With competition between credit card companies heating up many card issuers have used a variety of incentives to attract custom, so there is little doubt that customers that may have been interested in the low rates offered on the AMEX card will find suitable alternatives offering a range of different perks.
For instance, RBS and Natwest have recently reduced their standard interest rate to 13.9% p.a. and extended their 0% balance transfer deal to 13 months – while keeping the transfer fee at just 2%.
The seven percent increase on the AMEX BMW credit card is likely to be met with disdain from savvy credit card consumers that want to benefit from the convenience and flexibility of credit card spending without having to deal with the high rates of interest that are so often associated with credit card use.
Anyone looking for a low interest rate credit card is advised to check out the up to date listings at www.credit-card-comparison-online.co.uk/low-interest-rate/.
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