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Are Halifax and Lloyds credit card interest rate rises widespread?

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UKPublished 6 October 2026 · Written by BuyMeWhiskey Editorial Team · How we check facts

Halifax and Lloyds can change standard credit card rates, but a rate rise on some accounts does not mean every cardholder is being moved to the same APR. Check your own notice because rates, promotions and contractual terms can differ.

Next question: Do Universal Credit savings include reward accounts and cashback balances? →

If you have received a rate-change notice, read the effective date and options in the letter before deciding whether to accept or close the account.

Check Halifax rate-change information

There is no single APR that every Halifax or Lloyds cardholder must have

Halifax’s current customer guidance makes clear that credit card interest rates can differ by account and that standard rates may change. It distinguishes changes linked to the Bank of England Base Rate from increases made for other reasons under the account terms.

That matters when interpreting a report that “everyone” is receiving a rate hike. Two customers can hold cards under the same banking group while having different standard rates, promotional balances or contractual histories. The existence of a batch of rate-change letters does not establish a universal new APR for every account.

Some cards can move with Bank Rate

Halifax says that where a credit card’s standard rates are linked to the Bank of England Base Rate, the rates can change when the Bank Rate changes. Those changes operate under the account’s terms and are shown on subsequent statements.

Promotional or non-standard rates can be treated differently. Halifax says a promotional balance will continue until the promotional period ends, even when a Base Rate-linked standard rate changes. That means a customer who is using a 0% offer may see no immediate change on that balance while the standard rate elsewhere on the account moves.

Other rate increases have separate notice rules

Halifax’s current rate information says that where it increases rates for reasons other than Base Rate, it will write to customers at least 60 days before the increase and explain the reason. The bank’s published information also describes a customer option to close the account rather than accept the higher future rate.

The wider FCA rules for regulated credit cards similarly require firms to give customers a period in which they can reject the increase by closing the account, and to allow the outstanding balance to be repaid at the existing rate over a reasonable period. The exact wording should be read from the notice you receive.

If you always clear the statement, the APR may not change your cost

Credit card APR matters most when interest is actually accruing. If a customer pays the balance in full within the card’s interest-free period for purchases, the standard purchase APR generally does not determine the cost of those purchases. That is why a large rate increase can be financially important for a revolved balance yet largely irrelevant to someone who clears every month.

This does not mean the notice can be ignored. Cash withdrawals, balance-transfer balances, instalment plans or other transactions can have different rates or conditions. Check the transaction-rate breakdown on the latest statement rather than assuming every part of the balance is treated the same way.

Can you reject the increase?

For non-Base-Rate increases, the published Halifax terms explain that a customer can tell the bank they do not accept the increase and close the account. The account remains in place for repayment of the existing debt, and the customer cannot continue making new purchases on it after closure.

This is a choice rather than a loophole. Someone with a large existing balance may still prefer the old rate while paying the debt down, whereas someone who needs the card for ongoing purchases may decide that closing it creates a practical problem.

Should you switch cards?

Switching is not automatically better. A new card application can create a hard search, and a new lender can offer a different credit limit, balance-transfer period or purchase rate. If the issue is simply that an existing card is now expensive, first calculate how much interest the higher rate could add and compare that with the cost and eligibility risk of moving the borrowing.

Halifax also offers an existing-customer route to swap card types, but it warns that swapping can lose existing introductory rates and can apply the new standard rate to balances moved onto the new card. A separate new card can preserve the original account’s terms, but it creates another credit application.

How to read a rate increase notice

Identify which transaction types are changing.
Check whether the change is tied to Bank Rate or another contractual reason.
Note the exact effective date.
Look for the stated 60-day notification period where applicable.
See whether your promotional balances are protected until their scheduled end date.
Work out whether you actually carry a balance that will incur the higher rate.

If the notice looks wrong

Ask the card provider to explain which term permits the increase and which part of your balance is affected. Keep the letter and the statement showing the old and new rates. If the complaint is not resolved, the Financial Ombudsman Service can consider eligible complaints about financial businesses after the firm’s final response or complaint time limit.

Worked example

Illustrative interest-cost check: suppose a cardholder has an average revolving balance of £2,000 and receives a 3.5 percentage-point increase. This is an illustration, not a quoted Halifax or Lloyds APR.

At a simple annualised comparison, the extra interest associated with 3.5 percentage points on £2,000 is approximately £2,000 × 3.5% = £70 over a full year if the balance stayed constant. Real credit-card interest is calculated under the account’s daily or statement-based terms, and repayments change the balance, so the actual extra cost will not normally be exactly £70.

If the same customer pays the statement balance in full and therefore does not incur purchase interest, this calculation may have little practical effect. The first question is therefore whether the customer actually pays interest on the balance affected by the notice.

Are Halifax credit card APRs going up for everyone?#

No. A Halifax rate increase reported by one group of customers does not establish that every Halifax card is being repriced, because account terms and existing promotional balances can differ. The same principle applies to Lloyds cards within the wider banking group. Customers therefore need to distinguish a specific account notice from a claim about every card in the group.

Does a Lloyds credit card rate increase affect my 0% balance?#

A promotional rate normally has its own expiry and contractual terms. Halifax and Lloyds state that promotional or introductory rates can continue until they end, so check the notice and your statement rather than assuming a standard-rate change immediately replaces the promotion.

Can I refuse a Halifax credit card interest rate increase?#

For increases made for reasons other than Base Rate, Halifax says you can reject the change by closing the account and repay the existing balance under the stated arrangement. You then lose the ability to use that account for new spending.

How much notice should Halifax give for a non-Base-Rate increase?#

For a non-Base-Rate rate increase, Halifax’s current customer information says it will give at least 60 days’ notice and explain the reason. Base Rate-linked changes are handled differently under the account terms, so read the exact wording of your notice. The 60-day period is a contractual and regulatory protection, not a guarantee that every customer gets the same future rate.

Does the interest rate matter if I pay my card in full?#

If you pay the statement balance in full within the applicable interest-free period, a higher purchase APR may not increase the interest you actually pay on those purchases. The result can be different for cash withdrawals, balance transfers or other balances with separate rates. The relevant balance is the one on which interest is actually being charged, rather than the headline APR alone.

Can Halifax change my credit card rate because of my credit file?#

Halifax says external credit-reference information can be one factor in rate changes where the account terms allow it. The bank also says it may change rates for other permitted reasons, so keeping a strong credit file does not guarantee a fixed APR forever.

Should I swap my Halifax card after an APR increase?#

Not automatically. A swap can change the rates that apply to existing balances and may cancel promotional terms, while a fresh application can create a hard search. Compare the actual interest cost and your repayment plan before choosing a route.

Keep reading

Next question →Do Universal Credit savings include reward accounts and cashback balances?

Sources

Figures were checked against these sources before publication. If a rule changes, we update the page and show the new date.

General information, not personal financial advice. Rules depend on your circumstances; check the official source or speak to a regulated adviser before acting.