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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:
MORE COLLEGE CREDITChicago Sun-Times, United States - 11 hours agoDespite the current nationwide credit crunch, the State of Illinois secured $100 million for the student loans by tapping a new source -- credit unions. ... |
Credit repair is a DIY projectBaltimore Sun, United States - 8 minutes agoBy Gail MarksJarvis | chicago tribune Mike Ferrara wants to buy a house in a few months and is worried that mistakes on his credit report will keep him from ... |
Ask, and you might receive a lower credit-card rateSeattle Times, United States - 25 minutes agoPick up the phone, look at the latest credit-card offers and keep repeating this: The bank needs me more than I need it. By Susan Tompor Pick up the phone, ... |
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