| |
| |
|
Credit Information |
|
|
|
Are 0% Credit Cards Reaching Their End?
Are Credit Card companies starting to feel the pinch? We all know that the Credit Card companies make their money by charging us interest on the money we borrow. With all the 0% balance transfer offers that we have seen over the last few years its no wonder these companies are concerned they aren't making any money. Many customers who take advantage of these offers move once the 0% period has expired. These credit card companies are now using smart tactics to grab back a chunk of money that they have lost through these deals. One of the ways they are doing this is by reducing the interest free period, meaning you have less time to pay the balance off. If you don't pay it off by the time your 0% period ends you are charged interest backdated to when you made the balance transfer. If you do find yourself in this predicament and you decide to transfer the outstanding balance to another 0% credit card you will unfortunately now be charged a fee for making the transfer by the Credit Card Company you had the original offer with. These are all tactics that are now being used to make sure the Credit Card Companies make some money off of you. Here are some points that may help you to beat the new rules that are being implemented plus other ways to save on your Credit Card fees: ? The most obvious advice that can be given is to be disciplined and try to pay off the full balance off every month. ? If you fall in the remaining 85% of us that are not able to do this then you should opt for a Credit Card that has a low transfer rate which stays low no matter how long it take to pay off the balance. ? If you are in danger of exceeding your credit limit and being charged £25 then contact your Credit Card provider and get an increase on your limit. In most cases they will fall over themselves to do this. Once you are back on your feet get the amount reduced. Remember discipline! ? Whatever you do avoid withdrawing cash from your credit card. These services will cost you from 2% upwards of the amount drawn. ? Set up a direct debit. This will prevent you from ever being charged a late payment fee. Even if this is for the min balance due every month. This is one of the biggest money makers for Credit Card Companies. ? Don't take out Credit Card protection. It's not worth it and its over priced for what you get. This is a topic for another article. My advice, steer clear. ? Avoid using your Credit Card abroad. This is a sneaky way for charges to be implemented. The rate of exchange is not always the best and you get charged for the convenience of using your card in a foreign country. ? Don't be fooled into applying for a Credit Card that offers cash back and loyalty points. While some may be good the majority expect you to spend large amounts before you even qualify for any significant cash back. The incentives may be high but then so is the APR. We all need Credit Cards for day to day living to get by so advising on not having them is ridiculous. All we can say is be disciplined. Keep a close eye on your fees and charges and manage them very closely. Check you balance statement every month. Fraud is rife at the moment so don't get caught out. Grant Marwick is a freelance writer and owner of http://www.only-credit-cards.co.uk where you will find advice and more articles on Low interest and 0% Credit Cards
MORE RESOURCES:
Credit - Google News |
|
|
|
RELATED ARTICLES
New Credit Scoring Model Could Help Millions Mark and Beth, a young married couple in their twenties, established a goal to buy a home within the first three years of their marriage before starting a family. They budgeted and used their money wisely in order to save for the down payment. Comprehending a Credit Report Obtaining a credit report is an excellent way to begin taking control of your financial future. It's recommended that you review your credit report once a year, not only to be aware of your standing with creditors but to also keep abreast of errors and fraud. 10 Signs You May Need Credit Counseling Debt management programs can be of real help for people that discover they cannot face their debts. At first, they will attempt to solve the situation all by themselves by cutting down on spending and keeping a close eye on accounts. Free Credit Report - A Website Typo Could Be Costly In 2003, Congress passed the Fair and Accurate Credit Transactions act (FACT), which made it possible for consumers to obtain a copy of their credit report for free. In fact, the legislation makes it possible for consumers to obtain one free report from each of the three main credit bureaus - Experian, Trans Union, and Equifax, per year. Start Building Credit Fast! There are a couple of reasons for this. You can pay your bills on time for years and never gain more than a few points on your credit score. Collection Agency Secrets for Collecting on Bad Debt Getting worried that one of your clients, customers or patients will never pay? Have you given up on a customer who's essentially said he won't pay? Congratulations--being stiffed by a customer or patient is a milestone in the growth of a business or medical practice. But even the most hopeless of bad debts can sometimes be collected-collection agencies have been doing it for years. 3 Ways to Improve Your Credit Score by 50 Points In Less Than 30 Days In Less Than 30 Days. "What can you do to increase that set of three numbers on your credit report that can be so important with your financing?" I came across this question as I was surfing discussion groups the other day. Credit Repair Services vs. Do-It-Yourself Credit Repair Millions of Americans suffer because of bad credit these days, and almost all of these people turn to the Internet for help. In the past 5 years hundreds of 'internet-based' credit repair services have sprung up, preying on consumers in need of real help. Your Consumer Rights If you have ever fallen behind on your debts you already know that dealing with your creditors can be a hassle. Sometimes it can be downright humiliating. Give Yourself Credit The Beginning of the Credit Card EraIn 1951, Diners Club issued the first credit card to 200 customers who could use it at 27 restaurants in New York City. From that modest beginning, credit cards have become an indispensable part of modern life. A No-Brainer Way Of Getting Credit And Credit Cards What Is Your Credit Rating Now?If you have any charge accounts now, or have ever borrowed from the bank to buy a car, or if you ar paying on a mortgage, there is credit information on you.Up until a few years ago, you could only guess at what your credit rating was, because the credit bureaus who keep track of borrowers wouldn't tell the borrowers anything! But that's been changed through several laws, and now the bureaus have to send you your credit file when you request it. Can Credit Search Entries Affect Your Ability to get Approved for a New Loan in the UK? About Search Entries:Every time a lender checks your credit history from your credit file (i.e. Searching For A Low Interest Credit Card? These days, people need to very carefully consider what type of credit card they will carry in their wallets. There are so many options out there, and each individual has different needs. Rewards Cards: Are They Worth It? Virtually all consumers will have a credit card at some point in their lives. Is this an understatement? Probably, as most consumers carry multiple credit cards. Inflexible Friends and Plastic Assets, Why Money isn't Buying Love Anymore Consumers reject financial advice in favour of financial frivolityIt would appear that even though their "friends" aren't as flexible as they used to be, consumers are still stretching their credit cards beyond the comfort zone.The vicious circle of debt manipulation involving banks, consumers and commercial credit companies is putting consumer spending under strain, as funds begin to dry up. Online, Phone, U.S. Mail or In-Person: Where is Your Credit Card and Personal Identify Safest? Identity theft is the fastest growing crime according to the Federal Trade Commission (FTC). It occurs when someone takes a piece of your personal information and uses it without your knowledge to commit fraud or theft. 10 Ways of Reducing the Risk of Identity Theft 1- Check your credit report regularly2- Secure personal information in your home, especially if you have roommates, employ outside help, or are having work done in your home.3- minimize the amount of information someone can steal, do not carry extra credit cards, your Social Security card, birth certificate or passport in your wallet or purse, except when needed. Triple AAA in 30 Days Have you ever wonder about how to get good credit with spending alot of money. Well here is a little secret I used to get my credit back up to par. Identity Theft - How Can You Prevent It Happening to You? The nightmare of identity theft strikes an estimated 750,000 people every year. How can you keep from being one of them? While there is no guarantee that you won't become a victim, there are some steps you can take to decrease the risk and protect yourself. Applying for Credit Cards Online In the olden days, about 10 years ago, before the internet, consumers would have to fill in applications for credit cards, loans, mortgages and so on by hand. It's hard to believe now, but this lengthy process was the norm, with requests for extra documentation and references going backwards and forwards, until finally the application was accepted or rejected.
|
| home | site map |
| © 2006 |
