Supermarket Credit Cards Are Often Interest Free Credit Cards

March 20th, 2009 by writer | No Comments | Filed in Press Releases

It is funny how people look at my Sainsbury’s and oddly when I use it to make purchases at other stores. I have no idea why they think that the card should be limited to just the supermarket. One thing they are probably unaware of is that many supermarket credit cards are also interest free credit cards. This incentive is usually short lived meaning there is a term set to the free ride on the interest but by switching cards from time to time a smart user can avoid almost all the extra charges. Supermarkets offer these great terms as an inducement to apply for their cards. Although the interest free period is usually only 6 months long it can still offer great savings. This is especially true when one needs to make a major purchase and would like a little time to save the funds for paying it off.

Supermarket credit cards and all the other kinds of cards are explained completely at CreditChoices.co.uk. Credit Choices has reviews about every credit card deal available in the UK with complete explanations of the terms and rates. You can even apply directly for credit cards from the Credit Choices site. This is far preferable to applying at your bank as with online credit applications you can choose a card that gives you a loan decision almost instantly. Before you apply for any credit card it is highly recommended that you research all of the cards available at creditchoices.co.uk.

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0 Balance Transfers – Worse Deal Than They Seem?

February 15th, 2009 by admin | No Comments | Filed in Press Releases

Many credit card holders choose to transfer their card balance periodically, in an attempt to avoid potentially monstrous levels of interest payments. The availability of 0% balance transfers to UK credit card holders can be attractive to say the least, but is it really that easy?

What many people don’t realise is that there are hidden traps and pitfalls to some of the 0% transfer offers. Read below to find out just a few tricks that some of the financial institutes play when offering you a seemingly great 0% balance transfer deal.

More Obvious Cost

There is at least one cost that can be plain to see, and that is the balance transfer fee. This fee could be a simple flat fee, or could be based on a percentage of the balance being transferred. You would be wise to take a look at both options, and see which works out the cheapest for you. If, for example, you are transferring a large balance, you may be better with a capped flat fee, rather than a percentage arrangement. Obviously, conversely if you are transferring a smaller amount, make sure you look into the percentage type deals fully.

Less Obvious Costs of Balance Transfers

One of the most common place techniques used to part balance transfer victims with their money is the way that repayments are tiered. For example;

Say you transfer £2000 onto a 0% on balance transfer card, great.

Next you make a purchase on this new card, let’s imagine for the sake of argument you spend £250. Now, lets also assume that the 0% on transfers offer is JUST on transfers, not on new purchases…

So, to avoid paying interest on the £250 you have spent, you pay it off before the month is over. Great… Right?

Well, possibly. Although with some repayment setups, you are bound to pay the cheapest debt off in full before you get to pay off any more costly debt. In the instance above, that would mean clearing the full £2000 of interest free debt, before being able to pay the £250.
What this means in practise, is anything you pay off (the £250, for example) will come off the £2000 that is on an interest free deal, rather than off the £250 you spent… meaning that you will be paying the standard rate of interest on purchases stated in the terms and conditions for that card.

Whilst this example may seem bad, if you didn’t know this rule it may be possible for you to run up a large debt that you will be paying interest on for a very long time, either until you clear the initial 0% transferred debt, or transfer the whole card balance to yet another 0% on transfers offer.

It is worth noting that not all lenders use this payment tearing system, so be sure to compare your options and fully understand the meaning of the terms before you sign up for a credit card. Especially be weary of offers in shopping malls, where you may not have time to fully go through and research the terms of a given offer.

The internet can be very useful for carrying out research into various credit card deals, both via Google, and also a trusted comparison website, such as Creditchoices. Comparison websites like this allow users to compare offers on all manner of things, from interest free credit cards to mortgages.

Fine final cautionary note, with some card providers terms, if you miss a monthly repayment, you may trigger an instant end to your 0% period. This is most definitely something else you should check for in the cards terms before applying.

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Credit in 2009?

January 14th, 2009 by admin | No Comments | Filed in Press Releases

The worry for many at the start of 2009 is job security and enough cash to pay the bills. Whilst it is the government and business’ responsibility to safeguard the infrastructure we all take part in, we must take responsibility for our own finances. But the much vaunted ‘Credit Crunch’/Global Recession/Financial crisis has turned the attitude of many towards the hysterical. However, unless the banks keep lending they will face the same fate as those who face redundancy. Loans and credit will still be available to those the banks consider to cautious or responsible borrowers.
 
If you can afford to meet the payments you make on your card, now is a good time to be using credit. Even if your credit score is currently patchy, consistently using a card responsibly in grim times will certainly help improve the credit score. And, if you can be strict enough never to spend more than you can clear in one go and always pay on time, then you don’t pay for the privilege.
 

Adverse Credit Cards?


 
Many people think if you have a poor credit rating, the only cards available would be adverse credit cards. They are known to charge interest rates of around 40% APR and unless you can be certain of clearing the balance every month they should be avoided as the interest will accrue at an alarming rate that can quickly become unsustainable.
 

Interest Free Credit Cards?


Despite difficult times many of the lenders are still offering interest free credit cards, they may be slightly more difficult to acquire and the terms are not as generous as the days of ultra-cheap credit, but the lenders will keep offering such cards as these days there will invariably be a transfer fee that ensures them a constant revenue stream. The credit might be being slightly crunched, but if you are a responsible borrower your use of credit is beneficial to the lenders and as such, encouraged.
 
 
 
 
 
 
 
 
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Interest Free Credit Cards – And How To Avoid Bad Debt

November 13th, 2008 by admin | No Comments | Filed in Press Releases

 
If used wisely, interest free credit cards can be a good way to get a ‘free loan’. All too often though, people get caught out by hidden charges and end up in a bit of a financial pickle.
If you follow some of the rules below, you should be able to steer clear of the pitfalls of 0% credit cards.
 

1. Be 100% sure that you understand the length of the 0 interest period. Frequently people go over this period by mistake, and can then be lumbered with excessive interest charges. Keep the documentation that states the end date of this interest free period safe, and mark the date on your calendar, ideally also marking a week or so before it ends, to give you time to clear the balance.
 
2. What is the rate after the interest free period? – Even if you think you will not have any debt on the card by the time the 0% period runs out, if the present financial climate has taught us one thing, let’s hope it’s to expect the unexpected! – For this reason, make sure you know the rate after the 0% period, as with these sort of offers, the rate can often be quite high compared to ,most other credit cards.
 
3. If the offer is for 0% on purchases, what exactly do they cover under the definition of a ‘purchase’? – This may seem an odd question, but take it from us, the answer can oftentimes surprise! – For example the purchase of gift vouchers and online gambling may not be covered…
 
4. If you fail to make a months payments, what happens? – Whilst at first this may seem like a trivial matter – as you would expect to get a small charge on your account at worst, in actual fact, with some lenders failure to meet a monthly payment MAY result in a loss of the interest free period!!! – Check your terms!
 

Be sure that you know all the facts before applying for an interest free credit card

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Interest Free Credit Cards – Sound Financial Idea, or a Hidden Cost?

August 18th, 2008 by admin | No Comments | Filed in Press Releases

balance transfer credit cards

Managed correctly, interest free credit cards can offer a great way to borrow money. However if you are not careful, you may get caught out be hidden costs that are sometimes involved with these cards. We investigate to see how you can avoid getting stung.
 

Before applying for any credit card, you should make sure that you have all the facts about the charges involved.
 

Although at first glance it may seem like you can’t loose, interest free credit cards are no exception. Here are four points to help you avoid getting hit hard by unexpected fees.
 

  1. Make sure you know the exact length of the interest free period. All too often people over run this period without knowing it, and end up paying interest that they didn’t count on having to pay. Make sure you not only know the length of this free period, but also have it in writing, safely filed away.
  2. Know the rate after the Interest free period runs out! – Whilst you may feel this is not applicable, as you are confident that you can clear the balance before the interest free period runs out, none of us really know the future, and so you should at least be aware of the rate that you will be charged after the interest free period.
  3. What is covered by the interest free offer? – This seems an obvious question, but in fact, many people are actually caught out by this! – For example, did you know that in some cases buying a gift voucher may not be considered as an interest free period??? – Or gambling online? Imagine the shock when you get your card bill and you have been charged interest on hundreds of pounds worth of gift vouchers you bought people for Christmas? – AVOID these problems by getting your facts straight right from the start!
  4. What happens if you fail to meet a month’s repayments? – With some lenders you may loose your remaining interest free period! – Check this before you apply for the card! As you can see, there are numerous ways to get caught out when using interest free credit cards.

    5.  

    Make sure you do your research, and educate yourself as to what the deals really mean for you.
     

    Websites like www.creditchoices.co.uk offer consumers a comparison service, to make sure you get the right deals for you.

     
     

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