"Every credit card is expensive. But even banks limit the interest rates they charge, topping out at 22.9pc annual percentage rate (APR)."
"This is because once they hit 23pc per annum they could be classed as moneylenders, or to give them their proper name since 2022, High Cost Credit Providers (HCCP)."
Short-term loans provide immediate cash access but can carry significant hidden costs. Interest rates on these loans can be confusing, leading borrowers to underestimate the total repayment amount. Credit cards are generally expensive, with banks capping interest rates at 22.9% APR. Rates exceeding 23% classify lenders as High Cost Credit Providers (HCCP), which has regulatory implications. Understanding these rates is crucial for borrowers to avoid financial pitfalls associated with short-term borrowing.
Read at Independent
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