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Make the Base Rate Cut Work for You

There is little doubt that over the past year interest rates on borrowing in the UK have rocketed, and many people have been forced to pay a fortune in interest on their borrowing.

However, it seems that whilst lenders are always quick to bump up interest rates when the Bank of England base rate has been increased - and sometimes even if it hasn't - they are far slower to pass on any base rate cuts to borrowers, and some fail to pass on base rate cuts at all.

In fact, the situation has reached a point where industry officials are concerned that there is no longer any relationship between base rate movement and retail borrowing interest rates from lenders, which means that often borrowers are not benefiting from the base rate cuts, which are being applied precisely to try and benefit struggling consumers.

Therefore, if lenders are failing to pass on the rate cut it is up to you as the consumer to try and reap the benefits of any rte cuts by finding a competitive deal with a fair credit card lender that is prepared to pass on rate cuts to borrowers.

At this time of year many people will be looking for an affordable credit card to help them to deal with the expense of Christmas, and if you are looking for a credit card you should make sure that you do your research and compare credit cards to find a card that offers a competitive rate of interest.

The interest rates on credit cards can vary widely, so it is important that you do not rush into taking out the first card you come across in your rush to get a card in time for Christmas.

There are also a number of options available to help spread the cost of Christmas. A 0% purchase credit card would offer no interest charges for a period of up to 10 months, while a low interest rate credit card would offer a very cheap rate of interest on-going - so with no ending promotional period.

One industry official, Lyndsey Burton from Credit Card Comparison Online, said: "The reason that the Bank of England is cutting the base rate is to try and help borrowers to weather the difficult financial conditions, so it is most unfair that some lenders are failing to pass on this rate cut and are pocketing the difference themselves instead. People should not stand for this, and should make sure that they give their business to a credit card company that exercises fairness and passes on rate cuts to help the consumer."