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
|
|
|
Myths And Truth About Credit Scoring
Credit score is the key factor determining approval of almost any type of credit. It is based on the information contained in your credit report files. The widely used FICO score was developed by Fair Isaac Corporation, and it is a formula which assesses your potential credit risk.The information used to calculate credit score can be broken down into five major parts. Your payment history with banks and other lenders will account for 35% of the score, the amount of money you owe for 30%, and the length of your credit history...(related: Credit)
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.To work this plan you need at least $400 to begin. You should borrow this from your friends if necessary. Then go to a bank of your choice and deposit the $400 into a regular passbook savings account.Wait a few days for the account to be posted and return to the bank to ask for a $400 loan - you...(related: Credit)
What Are The Most Common Ways To Commit Identity Theft Or Fraud?
It's the number one source of consumer complaints at the Federal Trade Commission (FTC), and unfortunately, it's one of the simplest crimes to commit. Identity theft involves information from your daily life, from shopping, bill-paying, and even applying for a job. Thieves take advantage of everyday opportunities ...(related: Credit)
Credit Repair Myths And Facts
There are no secrets to repairing your credit. Many shady credit repair agencies would love you to think the...(related: Credit)
The Three Largest Factors In Your Interest Rate
There are three major factors that affect how much you pay for a loan. Understanding these factors can save you time, money and frustration.1. The Federal Reserve Discount Interest Rate.Banks and other lending institutions borrow money from the Federal Reserve Banks. The discount rate is the interest rate a Federal Reserve Bank charges elig...(related: Credit)
Repairing Your Credit Score And Clearing Derogatory Marks On Your Credit Report
Raising your credit score can be a fairly simple and straightforward process unless you have derogatory marks that need to be disputed (which will be explained below).The reasons for bad credit can be as follows, high balances, bankruptcies, late payments, and many others. The most significant thing you can do to raise your score is to change your financial habits. Chances are that if you have a bad credit score, you did something to make it that way. Here are some of the best ways to quickly raise your credit score:1. The most obvious: pay off your debt! This doesn't include a home mortgage, but revolving balances such as credit card debt, a car loan, etc.2. Make every payment on time. This is the most important factor in your credit score rating. If you have had late payments in the past, it will take some time to see...(related: Credit)
Identity Theft : They Got Him
His hard earned money? Gone. Creditors on his back everyday. Police knocking on his door. His family strained to the breaking point. He didn't do anything wrong but my business partner's life got turned upside down a few years back. He became a victim of what is now the fastest growing crime in the world. Identity theft.<...(related: Credit)
Do You Know Whats On Your Credit Report ?
It is important to know your credit rating for a number of reasons. Believe it or not there may be errors in your credit report, and it is essential that you repair them immediately.It is a common practice for a bank or lending institution to check your credit, and within minutes they will know more about your financial background than you will. Is this something that is appropriate and to your advantage? No, absolutely not. It is truly a disadvantage for you when negotiating a loan...(related: Credit)
Consumer Credit Reports
A consumer credit report is a factual record of an individual's credit payment history. It is provided for a purpose permitted by law: to help a credit grantor or lender quickly and objectively decide whether to grant you credit. Most of the information in consumer credit reports comes directly from the companies a person...(related: Credit)
10 Tips To Prevent Credit Card Fraud
Imagine opening your credit card statement one morning and discovering to your horror that you suddenl...(related: Credit)
How You Can Avoid Becoming A Victim Of Identity Theft
To reduce or minimize the risk of becoming a victim of identity theft or fraud, there are some basic steps you can take.The most important one is to ask periodically for a copy of your credit report. This is crucial because it is the surest and quickest way to determine if someone is using your name. Your credit report should list all bank and financial accounts under your name...(related: Credit)
Repair Your Credit - The Right Way!
How to Repair a Bad Credit Rating?The Right Way!If you have a bad credit rating, then you might find that your ability to get financing, loans, and even some jobs is greatly diminished.Once you have a bad credit rating, it might seem like there's nothing that you can do about it? but you don't have to believe that. It's not as difficult as you might think to get by with a bad credit rating; with a little...(related: Credit)
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. If this doesn't work then it is time to ask for help from a financial expert. The sooner you admit you need help from an expert, the better will be for your future. The best time to seek the advice of an expert is before the appearance of most of the important 10 signs you may need credit counseling. You should alr...(related: Credit)
site-map - Copyright © 2007 | Contact Webmaster | All Rights Reserved | Free Articles and Information | Credit