In a week when the base interest rate has fallen to 1.5%, the Amex BA Premium Plus Card now has a headline APR figure of 46%.
The credit card provider has increased the annual fee on its British Airways Premium Plus card from £120 to £150 for existing customers.
This increase has helped push up the annual percentage rate (APR) on the card from 36.6% to 46% – making it the most expensive rate on the market.
The rate customers are charged on transactions has risen from 16.9% per year to 19.9%.
An Amex spokeswoman quoted in Friday’s Daily Telegraph stressed the fee on the card had remained unchanged for seven years: “We have held off making any fee increases. However, the cost of providing these products has increased. Rather than reduce the benefits on offer, we have made a slight increase to the fee.”
Which? calls the rate “ridiculous”
Martyn Saville, our credit card expert at Which?, called the Amex rate “ridiculous”. “This is over 30 times base rate,” he said. “Credit card interest rates now bear no resemblance to Bank rate – it is just about what companies think they can get away with. Even at 19.9pc it is far too high.”
Martyn offered some clear advice: “If you pay off your credit card bill in full every month, you’d be better off going for a Best Buy cashback credit card and buying your extra flights yourself with the money you save.
The American Express Platinum Cash Back card currently pays 5% cashback on purchases for the first three months, and up to 1.5% after that. For more cashback credit card deals, have a look at our Best Buy Cashback credit card reviews.”
For the best card for borrowing Martyn advised looking at the Barclaycard Simplicity Visa card which currently charges just 6.8%. For more Best Buy credit cards for borrowing, visit our credit card reviews.
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