Co-operative Bank cuts credit card rates'Clear' card customers to benefit from lower APRs

19 August 2010

Card fan

Unless you really need to, try not to withdraw cash using your credit card - the interest rates are eye-wateringly high

The Co-operative Bank has announced it will cut credit card rates for many customers with its ‘Clear’ card.

If they apply for the Co-op's Clear credit card, customers with a Current Account Plus, Privilege or Privilege Premier Current Account will see the typical card rate drop from 12.9% to 11.9%.

A good all-rounder

An APR of 11.9% could be worth considering if you’re looking to use your card for borrowing. This rate also covers cash withdrawals, and there are no cash advance fees to worry about if you use your credit card at an ATM.

The card offers 2.9% on balance transfers for 12 months. While this doesn’t sound as enticing as a 0% balance transfer deal, unlike with many other cards there aren’t any balance transfers fees costing you extra.

A great all-round credit card

Which? credit card expert Martyn Saville commented: 'This Co-op card doesn't have a headline-grabbing 0% deal on purchases or balance transfers. What it does have, however, is a refreshingly straightforward approach, with fewer pitfalls than rival cards.

'If you're looking for a single card that charges you the same rate on purchases and cash withdrawals without sneaky fees and charges, this could be an excellent card for you. And the Co-op's clear ethical policy is an added bonus.

'It's also good to see a credit card provider being upfront about balance transfer fees. Most providers offering a 0% balance transfer deal add on a transfer fee of around 3%, so the deal isn't really interest-free. The Co-operative Bank has instead set its balance transfer interest rate at 2.9% with no additional transfer fee. This clear and straightforward approach is very refreshing.'

Which? Best Rate credit cards

If you need advice to help you choose the best credit card for your needs, read the free Which? guide to choosing a credit card.

Once you know the best type of card for you, check out Which? Best Rate credit cards to find the most competitive deal available today, whether it's a cashback card, a card offering 0% on purchases or the longest 0% deal on balance transfers.

And check out Which? Recommended Providers to find out which credit companies offer the best customer service without hitting you in the pocket.

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