Posts Tagged ‘0 Credit Cards’

As competition in the UK credit card industry has consistently increased in recent years, credit card providers have been searching for more and more ways to attract customers to their own package of products. Most have gone about this by dropping prices with credit card rates available today that would have been unthinkable just a few years ago. It is now possible to find 0% credit card interest rates not only on balance transfers but also on purchases. While these rates may only be available for limited introductory periods of a few months, it is easy to see how prices have continued to drop across the market as credit card providers have been searching for new ways to attract customers.

Interest free and credit card may sound like a couple of words that really do not belong together in the same sentence. And the fact is that just a few short years ago, you would have been absolutely correct. There was a time not too long ago when there was no such thing as the 0% credit card. Now however, they are everywhere you look, literally. You cannot even open your mail any more, or answer you phone without being offered some amazing sounding deal on 0% credit cards. They are becoming more and more common and it is therefore important to realise the pros and cons of many of the most common deals that are out there so that you make sure that you get for yourself the very best deal on a 0% credit card possible.

The first thing to remember in any case is that there are two main types of 0% interest that you will be offered and these are very different deals. The first will be 0% on balance transfers and the second will be 0% on purchases. It is needless to go into the difference between a balance transfer and a purchase but suffice it to say that there is a very significant difference and there will be many cases where one of these offers will be of great value to you while the other will be practically useless. The trick is to make sure you make sure what you are being offered and only sign up to a deal that you are confident will fit your needs and benefit you as much as possible.

The best place to start looking for one of these 0% credit cards is on the internet. The fact of the matter is that in recent years the UK credit card market has really saturated itself with amazing sounding deals and the competition is so high among credit card providers now that it is really quite easy to get a 0% credit card.

The two exceptions to this and the groups that will find it more difficult to get a 0% credit card will be people with bad credit ratings and people with no income. Hopefully, in either of these two cases, the situation will not last forever and you will merely have to wait a little while until your position improves and then you will have no problem at all getting 0% credit cards. The only real thing to remember with 0% credit cards is that the free credit will only be for a couple of months and after this time you will have to pay interest. And secondly, everything you spend on that credit cad has to be paid back eventually so take care not to let that spending get out of control.

Dont despair if you are not accepted for many of the credit cards on offer. It may be your credit rating is not what some credit card companies are looking for. If this is the case you will have to do a little more work and that starts by aiming a little lower. Try applying for a run of the mill credit card with no 0% deals, use it for a while. During this period your credit rating will be building up. Once your credit rating is up to scratch you can then apply for these mouth watering 0 per cent introductory deals.

Avoiding Credit Card Wipe-outs: How To Succeed With Rate Surfing

Rate surfing can be a good way of reducing debt but there is a risk. To avoid long term damage to your credit rating, it’s best to make sure you do it right.

Rate Surfing Research

First of all, start by researching the current credit card rate offerings to see which one is best for your circumstances. Many people opt for the 0% interest deals, as these allow them to apply the payments the make to clearing any outstanding debt. These deals usually last for a limited period (between three and 12 months), so canny rate surfers will need to be on the lookout for the next deal.

Keeping Track Of Credit Card Interest Rates

With rate surfing, it is essential to move to the next card before the reduced interest period runs out. If you don’t, you could find yourself with hefty payments to make. If you’re surfing with many credit cards, you’ll need to keep track of the different offer expiry dates so you don’t get caught short. Keeping track of these dates can be as simple as writing them down on a piece of paper.

The more technically savvy may prefer to use a spreadsheet for this purpose. Whichever system you use, its worth using a calendar to keep track of the dates when you need to apply for new cards and move money. If you have an electronic calendar, set up automatic reminders for these dates. That means you will always know when it’s time to make the next credit card balance transfer.

Finding cards to move to is relatively easy, as there are several websites that offer comparisons of credit card deals. The same sites will also show you whether the 0% credit cards offer other incentives, such as air miles, vouchers, cash back or charitable contributions.

Balance Transfer Fees

One factor to think about is the rate charged for the balance transfer. With rate surfing becoming more popular, many credit card companies are charging a one-off balance transfer fee of approximately 2% of the sum transferred. This can soon add up when you are transferring large sums or working with several credit cards. There are still a few cards that do not charge this fee, so it’s worth shopping around to find one.

Organise Your Rate Surfing

Organisation is the key to successful rate surfing. For example, it may be worth automating your credit card payments by setting up a standing order through your bank. That way you can be sure that your credit card bill will always be paid on time, and there won’t be any danger of damaging your credit rating.

Rate surfing works best for those who intend to clear a debt. Adding more money to a transferred balance will not help with this goal. In addition, credit card companies may charge a different interest rate on new spending. This could increase, rather than decrease, the debt. With a bit of organization, most people can manage to reduce their levels of debt through rate surfing.