Credit card usage has increased in Q1 2009
Posted May 21st, 2009 Credit card spending has increased in the UK each month in 2009, according to a study by UK payments association Apacs. It’s a little odd considering all the financial doom and gloom that’s flying around at the moment, and although the increase isn’t massive month on month, previous years have seen a decrease month on month from January. In 2009, there were 159 million credit card purchases made in January, 160m made in February and 168m made in March.
What’s interesting is that although the number of transactions went up this year, the gross credit card lending has decreased compared to the same quarter last year, down 8.7% from £33.2 billion to £30.3. This mirrored the fall in repayments which fell by 7.9% from £32.2 billion to £26.9 billion. This looks to be good news, that people seem to be making an effort to reduce the amount of credit card debt they’re in, which is excellent news. We should see this trend continue in the next quarter, as the economic outlook continues to stay scary.
The final interesting trend is that overall spending on plastic cards; credit cards and debit cards combined rose by about 5% from 1.8 billion to 1.9 billion purchases during the first quarter, reflected in an increase in the amount from £91.2 billion to £94.2 billion. The total spending on plastic cards already outstrips cash, and based on this trend, debit card purchases alone are soon likely to be larger than cash purchases.
You can read the study here, but it’s not the most exciting read I can promise you, you’ve probably got better things to do.
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Comparison of Top 10 Credit Card Offers
| Credit Card | Card Details | Interest Rate | Cash Advance Rate | Balance Transfer Rate | Annual fee | Interest free days | ||
|---|---|---|---|---|---|---|---|---|
 Halifax All in One Credit Card |
The Halifax All in One credit card offers a great introductory rate, and is perfect for saving you money now as well as in the future. | 15.9% APR | 27.95% p.a. (variable) | 0% for 9 months | No Annual Fee | 59 Days interest free |
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 Virgin Credit Card |
As well as a great rate, the Virgin Credit Card comes with:
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16.6% APR (variable) | 27.9% p.a. (variable) | 0% for 16 Months (2.98% fee on balance transfers) | No Annual Fee | 50 days on card purchases |
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 Capital One Classic Visa |
This card is designed for people with bad credit ratings, this is why the rate is quite high. |
Typical 34.9% APR variable | 34.9% APR | 34.9% APR | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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As well as earning Flying Club miles which you can spend on brilliant rewards like flights, upgrades, car hire and more, a Virgin Atlantic Credit Card gives you up to 46 days interest free on card purchases. |
17.9% APR typical rate | 20.9% p.a. (variable) | 0% for 6 months (2% handling fee) | No Annual Fee | Up to 46 days on card purchases only. |
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The Virgin Prepaid MasterCard from Virgin Money is a prepaid Mastercard that you can add funds to, and use these funds for normal purchases. |
N/A | N/A | N/A | N/A | N/A |
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5% cashback on purchases in your first three months (up to £4,000 of spend). Thereafter, earn 0.5% on the first £3,500, 1% on £3,501 to £10,000, and 1.5% after £10,001. |
18.9% p.a. | 27.9% p.a. | 18.9% p.a | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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Vanquis Visa Card is designed for people with no credit history or who have previously had bad debt. Representative 39.9% APR (variable) |
Representative 39.9% APR (variable) | 39.9% | N/A | No Annual Fee | Up to 56 days on card purchases only |
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The award winning prepaid card with no credit check or bank account needed. | Funds in your Account will not earn interest | Prepaid only - N/A | Prepaid only - N/A | £59.40 p.a. (£4.95/month) | Prepaid only - N/A |
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