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Britain's Most Expensive Credit Card: American Express Charges 46% APR

Strategic Insights

— 1 min read

American Express's British Airways Premium Plus card now carries the highest credit card interest rate in Britain, with an APR of 46% - 30 times the Bank of England base rate. Consumer groups have criticized credit card companies for charging excessive interest rates, with some cards reaching APRs of over 35% despite the Bank of England's historically low interest rates. The high APR is largely due to annual fees and interest charged on transactions, which have increased over time.

Key Takeaways:

  • American Express's British Airways Premium Plus card now has the highest credit card interest rate in Britain, with an APR of 46%.
  • This APR is 30 times the Bank of England base rate, far exceeding the usually high credit card interest rates.
  • Consumer groups, including Which!, have criticized credit card companies for charging excessive interest rates, with some cards reaching APRs of over 35% despite the Bank of England's historically low interest rates.
  • Four of the five cards with high APR have annual fees of up to £300.
  • American Express has increased the interest charged on transactions from 16.9% to 19.9% and raised the annual charge from £120 to £150 for the Premium Plus card.
  • The APR calculations take into account the annual fee, which has increased and contributed to the vast rise in APR.
  • Consumer group Which!'s credit card expert Martyn Saville states that even 19.9% is too high and that credit card interest rates now bear no resemblance to Bank rates.

Statistics:

  • 46% APR on the British Airways Premium Plus card, which is 30 times the Bank of England base rate.
  • 37% APR on the Virgin Money American Express card.
  • 41% APR on the Citi MasterCard.
  • £300 - the annual fee for four of the five cards with high APR.
  • £120 - the previous annual charge paid by customers for the Premium Plus card.
  • £150 - the new annual charge paid by customers for the Premium Plus card.
  • 30 - the number of times the Bank of England base rate has increased in the APR for the Premium Plus card.

Sources:

  • SRI CARMICHAEL American Express
  • Which!'s credit card expert Martyn Saville
  • The British Airways Premium Plus card
  • Virgin Money American Express
  • Citi MasterCard

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