Saturday, April 07, 2007
Are 0% Credit Cards Reaching Their End?
Are Credit Card companies starting to experience the pinch? We all cognize that the Credit Card companies do their money by charging us interest on the money we borrow. With all the 0% balance transfer offers that we have got seen over the last few old age its no inquire these companies are concerned they arent making any money. Many clients who take advantage of these offers move once the 0% time period have got expired.
These credit card companies are now using smart tactics to catch back a ball 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 got less clip to pay the balance off. If you dont wage it off by the clip your 0% time period stops you are charged interest backdated to when you made the balance transfer.
If you make happen yourself in this quandary and you do up one's mind 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 certain the Credit Card Companies make some money off of you.
Here are some points that may assist you to beat out the new regulations that are being implemented plus other ways to salvage on your Credit Card fees:
The most obvious advice that tin be given is to be disciplined and seek 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 choose for a Credit Card that have a low transfer rate which remains low no matter how long it take to pay off the balance.
If you are in danger of exceeding your credit bounds and being charged £25 then reach your Credit Card supplier and get an addition on your limit. In most cases they will fall over themselves to make this. Once you are back on your feet get the amount reduced. Remember discipline!
Whatever you make 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 volition forestall you from ever being charged a late payment fee. Even if this is for the minute balance owed every month. This is one of the biggest money shapers for Credit Card Companies.
Dont take out Credit Card protection. Its not deserving it and its complete priced for what you get. This is a subject for another article. My advice, maneuver clear.
Avoid using your Credit Card abroad. This is a underhand manner 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.
Dont be fooled into applying for a Credit Card that offers cash back and loyalty points. While some may be good the bulk anticipate you to pass large amounts before you even measure up for any important cash back. The inducements may be high but then so is the APR.
We all need Credit Cards for twenty-four hours to twenty-four hours life to get by so advising on not having them is ridiculous. All we can state is be disciplined. Keep a stopping point oculus on your fees and charges and manage them very closely. Check you balance statement every month. Fraud is prevailing at the minute so dont get caught out.