Another interest rate rise!

Last month Tymit increased the interest rate by around 7%. I thought this was somewhat excessive and a bit disappointing as it moved my interest to over 21%. I believe this is far too expensive, and although it doesn’t impact me directly (I always pay in full each month), I do have a bit of a moral problem supporting a company that exploits those who are less financially savvy than myself.

Anyway, I sucked it up and carried on as otherwise I quite like some of the features of Tymit, and I haven’t yet found anything I like better for everyday spending.

To my further disappointment though, I get an email this morning saying that they are raising interest rates again by another 0.5%!

This is a bit ridiculous really, the Bank of England base rate is still ONLY 1.75%. Does this really warrant Tymit charging over 22%. I wish I could earn that much in my savings accounts!!

Hi @Stephen and thanks for sharing your thoughts on this. I totally understand your frustration here.

In order to be able to continue providing a credit facility to our customers, we have to stay in line with the changes that the Bank of England is imposing across the industry. This means that we sometimes need to increase the interest rates too.

The previous interest changes were put in place to better align ourselves with general interest rate levels in the marketplace. This was a business decision and there was also opt out option in form of closing the account with us as we appreciate not everyone will accommodate this change.

However, in spite of any changes, you can still plan any transactions into 3 interest free instalments to avoid any APR charges.

With all that being said, I appreciate your disappointment and I’m happy to raise this as a complaint for you so I’ve messaged you requesting some more details from you, hope that’s OK Stephen. Look forward to hearing from you!

Maybe check out the rate with other card companies? I think you will find that they are much higher! Still far too high though,

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My Capital One card is 18% and I have a 10k limit on that one.

My Amazon card is 21%

Just thought Tymit was going to be better.

Yeah, I was pretty deluded about that too! :rofl:

Funny how Tesco can still make a profit on their Low Rate card at 9.9% and NatWest can on their standard card at 12.9% APR.

And neither of them have increased their rates following the BoE rate hike.

I had cards in the noughties with 6.9% rates when BoE base rate was 4-5%.

Nothing but naked profiteering nowadays.

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