Personal pricing on credit cards is increasing

Personal pricing in the UK credit card market is making it difficult for large numbers of consumers to prejudge what rate they will be offered, it has been claimed.

According to Defaqto, the independent financial research company, many credit card providers now use 'personal pricing' where the interest rate charged is based on that individual's details, credit record and repayment history.

Further to this, Defaqto claimed that of those Britons who are actually offered a credit card, usually two-thirds will get the best rate, while up to one third will get offered a higher rate.

David Black, banking specialist at Defaqto, said: It always used to be fairly straightforward to get a credit card but providers have become increasingly choosy about who they will lend to and, if they will lend, at what rate.

Many consumers don't even get to that stage because the number of credit card applications being rejected has shot up.

Meanwhile, Virgin Money recently launched a new credit card that enables customers to donate money to good causes when they make purchases.

Under the terms of the new product, consumers will donate one per cent of all spending on card purchases to a nominated charity .