Cash point

The rate lottery that is the credit card market is about to change. Those looking for a credit card will be able to see the actual interest rate they will get before fully completing an application as Experian introduces a “real rates” service.

Credit card and loan providers only have to offer their advertised representative Annual Percentage Rate to a minimum of 51% of customers who apply – that means just under half can end up on much higher rates.

Currently, Virgin Money and Capital One have signed up to the Experian service, while customers who are pre-approved for cards from Aqua, Marbles, MBNA and Barclaycard, will also see the real rate they will get.

Amir Goshtai, managing director of propositions & partnerships at Experian, said: “Improving transparency for consumers so they know what they’ll get is something the industry should be striving for.”