Why are credit card interest rates still sky high when the Bank of england rate is at its lowest for 300 years?

It's down to the Risk Premium ..

Lets be honest, right now, the the risk that people will not be able to pay their Credit card debt is getting higher and higher every day ...

Trying to limit the Interest rate charged by the Credit Card Companies will actually MAKE THING WORSE .. yes, the Government could set a max. rate, BUT they can't FORCE the Card Companies to lend you money ..

SO, if there is even the slightest chance of the Government imposing rate limits, you can be 100% sure the Credit Card Companies will stop lending money, start lowering max. Credit Balance and upping the minimium monthly payments (in a desperate attempt to get their money back before it's too late ..)

credit cards are an on the spot unsecured loan, this mean you can borrow the limit from your bank any time with providing any security to repay it (like a house) ,. This adds alot more risk for the bank.

this means there is a hugely increased risk for the bank of people defualting and not repaying the loan, not to mention the added costs the banks have with monitoring credit card fraud as well as maintaining the processing systems.

Adding to this credit card companies like Visa and Mastercard also get a piece of the pie.

This is why credit cards have a much higher interest rate that other forms of finance, the simple solution is not to use credit cards

email me :)

how is it in england?

im merely 17 and interestedd.