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Rachel Springall

Finance Expert & Press Officer
Published: 20/09/2022
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The average purchase APR reached a record high this month, according to the Moneyfacts UK Unsecured Lending Trends Treasury Report. Currently, this average APR stands at 29.6%, a rise from the 26.6% recorded in August.

The increase was mainly due to American Express, whose newly launched card charges 439.9% APR. Much of this APR is due to its £575 yearly fee. More information on this card’s perks, and other reward cards on the market, visit our Rewards Card table.  

There have also been some interest purchase rate rises over the last three months, including those from American Express, Barclaycard, HSBC, Sainsbury’s Bank and Tesco Bank, and these, coupled with other card launches, resulted in a rise to the average per annum rate to 23.967% APR.

Interest-free terms also fluctuated over the last three months, and between June and September both the 0% introductory terms for purchases and balance transfers fell slightly.

There remains a healthy number of offers that will allow borrowers to move their debts interest-free or indeed make purchases, but this area of the market saw more subdued activity last month.

Will the average APR rise further?

In the months leading up to the festive season and the start of 2023, more competition could arise. One area that has worsened for borrowers is balance transfer fees, where the average stands at 1.99%, up from 1.95% in June. Borrowers looking to consolidate their debts would be wise to carefully compare these upfront fees and the length of any 0% offer before they commit.

To help those figure out their minimum monthly repayments, use our calculator below. 

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Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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