Which? report slams "misleading" credit advice
A report by Which? magazine has accused UK credit card companies of hiding the true cost of services from their customers.
The publication claims that companies issued 'misleading' advice about the cost of borrowing, by failing to let on when the card starts and stops charging interest.
Cahoot's credit card, for instance, with 11.8 per cent interest, seems to offer cheaper borrowing than HSBC's at 13.9 per cent.
But borrowing £2,800 over a year would cost £40 with Cahoot and £38 with HSBC, even though HSBC has a higher interest rate.
There are 14 different methods used by card companies to apply interest, and with many firms not being open about their own service, it is less than simple to compare by just looking at the advertised rates.
Which? editor Malcolm Coles has called upon the credit card industry to 'use one standard way to charge interest so consumers really can choose the cheapest card'.
If all cards had the same interest rate, it would be far easier to distinguish the cheapest from the meanest: the most expensive offers could cost 83 per cent more than their competitors.
Customers should make themselves more informed in the search for the best buys by checking out the best advice online. | 
