Credit cards: from cheap as chips to beyond black

Two new credit cards have been launched this week, both of which are worth considering.

Abbey has launched a new card with a standard APR of 10.9%. Only five cards offer a potentially better rate than this but some of these cards, in particular Capital One’s No Hassle card, Cahoot and Halifax One’s Visa, will only offer the quoted rate to those who are an A1 credit risk and ordinary mortals may have to pay more.

Abbey’s new flat rate card is offering a consistent rate of 10.9% APR for everything – purchases, balance transfers and cash withdrawals. It also guarantees fewer charges than some other conventional credit cards with no annual fee, no cash advance fee for using cash machines, and fee-free cheques. It also offers a 59 days’ interest free period on the items you buy with the card.

The five other cards that offer better flat rates are Capital One Bank’s No Hassle card at 5.9% for purchases (but a hefty 20.5% for cash withdrawals), Northern Rock’s Base Rate Tracker card at 8.6% for purchases, 9.4% for cash withdrawals, Cahoot at 9.3% for purchases, 11% for cash withdrawals, Halifax One at 9.9% for purchases and a massive 25.4% for cash withdrawals and Intelligent Finance at 10.8% for purchases and 12.4% for cash withdrawals.

Although Capital One, Cahoot and Halifax One advertise a lower rate for purchases, they are more expensive than the new Abbey card for cash withdrawals. Of the five only Northern Rock’s Base Rate Tracker card is genuine competition because the rates for both purchases and cash withdrawals are lower than the new Abbey Card.

Among the premium gold and platinum cards, only Co-op Bank’s Platinum Tracker beats the new Abbey card with an APR of 8.6% for purchases and 9.4% for cash withdrawals.

Of course, there are dozens of cards offering all kinds of promotional and introductory giveaways at anything from 0% credit for the first six months to Air Miles and other gimmicks but for anyone who uses the credit facility, the most important aspect is the standard APR and on this front the new Abbey card scores well.

Angus Porter, Abbey’s customer director, says: ‘This new flat rate card could not be clearer – what you see is what you get. It has been designed to be simple and transparent, helping people stay in control of their finances.'

‘The flat rate card builds on Abbey’s other fair banking services, including our current account, which pays interest of 2.5% and protects customers who make an occasional mistake, by guaranteeing to pay the first unauthorised item in six months, up to £50,’ says Porter.

For simplicity and transparency as well as overall cost, the Abbey card is definitely in amongst the best buys. To apply for the Abbey Flat Rate Card call 0800 731 7774 or you can apply over the counter in an Abbey branch.

For those who are style conscious and into status, the new card from private bank Arbuthnot Latham, Beyond Black, has the additional advantage of being linked to Quintessentially, the lifestyle management and concierge service.

You have to be a high net worth customer of Arbuthnot Latham to qualify. Facilities available to ‘Beyond Black’ cardholders include private banking and full wealth planning incorporating investments, insurance, pensions, and mortgages.