Warning issued to anyone with a Nationwide credit card

Nationwide Building Society is set to increase credit card interest rates by up to 50% in weeks.

The move comes despite the Bank of England’s decision to lower central interest rates from 4.75% to 4.5% this month.

From April 1, the building society will increase the representative rate for existing credit card customers by up to five percentage points.

The plan, which could see customers' interest rates rise by up to 50%, will affect customers with the Member, Select, Nationwide, Gold, and Classic credit cards.

Nationwide's maximum annual percentage rate (APR) for new and existing customers will remain at its current 24.9%.

However, the increase will not be applied to customers in financial difficulty, including those in the later stages (30+ months) of persistent debt.

Nationwide said customers can also opt out of their rate increase, but their cards will be frozen for new transactions.

Those set to receive the steepest rise of up to 5% will see purchase interest rates increase by up to 50%, adding an extra 42p in monthly interest for every £100 outstanding on their balance.

Those receiving the lowest increase - 1% - will have another 9p added in monthly interest for every £100 outstanding.

A Nationwide spokesperson said: “In recent years, the cost of providing and maintaining credit cards has risen. We are not immune from this, and we do need to increase some of our lower interest rates while holding our maximum rate at an APR of 24.9%.

“Despite these changes, our interest rates will still be below the market average. We will not be applying increases for those in and near financial difficulty or who have been in debt for a long period.”

Regarding the increase, Dariusz Karpowicz, director at Albion Financial Advice, said: "The timing couldn't be worse for Nationwide customers facing credit card interest rate increases of up to 50%. With inflation still pinching pockets and energy prices climbing, this April 2025 change adds another financial hurdle for those already juggling debt.

“If you've received a notice letter, remember you have options. Those in financial difficulty will be exempt, and you can opt out of the increase - though your card will be frozen for new purchases.”

He added: “For others, this might be the perfect moment to consider balance transfer offers, consolidation loans with lower rates, or creating a payment plan to clear balances before the new rates kick in."

A balance transfer allows eligible customers to move their existing debt to another provider, often with a small fee of 2% to 4%. In exchange, they can eliminate interest payments for a set period.

Jamie Elvin, director at Strive Mortgages, said Nationwide’s decision to raise credit card interest rates “will come as a blow” to many borrowers already struggling with the rising cost of living.

He said: “With the Bank of England holding interest rates higher for longer, lenders are adjusting their pricing, but such a sharp increase raises concerns about affordability.

“Borrowers should review their options carefully—those who can opt out of the rise should weigh the benefits of keeping their existing rate against the loss of access to new spending.”