Fresh shots fired in card battle

THE BATTLE between credit card issuers intensified this week, with two fresh cuts to existing interest rates for borrowers.

TSB announced the launch of a new tiered interest structure in place of its single rate of 1.74 per month for purchases.

From next month, the tiered rate will be a monthly 1.6 per cent, or 20.9 per cent APR, for balances of up to pounds 999, 1.53 per cent between pounds 1,000 and pounds 2,499 and 1.38 per cent, or 17.9 per cent APR, for larger debts.

TSB said a customer borrowing pounds 2,500 on the new rates would save pounds 95 in interest charges over a year. There is no annual fee.

Save & Prosper is cutting the monthly rates on its own Robert Fleming Visa and Mastercards from 1 per cent to 0.95 per cent, or 13.9 per cent APR for purchases.

A cardholder owing pounds 1,000 would expect to save at least pounds 75 a year in interest charges, compared with the old rate. There is a pounds 12 annual charge for the card.

Barclays Premier Gold is offering free travel insurance for all its customers from 1 March. It says this will save frequent travellers between pounds 75 and pounds 120 a year.

Laurentian Milldon, part of Laurentian Financial Services, has launched a Visa card with an APR of 17.9 per cent. The card has a six-month introductory rate of 13.9 per cent APR for cash advances or balances transferred from other accounts.

Corporate users of Company Barclaycard are being offered 28-day deferred payments, replacing the seven-day limit.

More than 250,000 people hold a GM credit card, launched last month, with applications running at 40,000 a week. The card offers benefits including discounts of up to pounds 2,500 on Vauxhall cars.