I was recently talking to Martin Greenwood,
a business and finance expert from Zibb
who told me most banks and card companies offer attractive deals for credit
card transfer as well as very tempting reward schemes. Most will accept balance
transfers of a limited amount at 0{fc3cc4819efde523aa5feee98ed9dadffff73f78a79cc7ef8c096cfc01c5f905} interest for an initial period of between
six months and two years; after which interest is applicable as normal, or
possibly a little higher. If you transfer your balance from one card to another
and then pay off that balance within the initial time period, you are able to
pay it back interest-free and this is an excellent solution for people who are
finding themselves struggling to repay credit card bills, as often the minimum
required monthly payment is the same amount or less than the monthly accrued
interest.
After the transferred balance is cleared,
the cardholder can go on to participate in some of the other credit card
rewards schemes or points systems available to them; for instance a card may
work on a points system whereby points are accumulated with every card purchase
and then these points are redeemable for air miles, gifts, vouchers, travel discounts
and so on. Other rewards schemes may offer immediate discount on certain
purchases or services paid for on the card, or they may give cash back on
everything paid with the card; in varying percentages according to the service
or product you are purchasing.
Banks and credit card companies are
constantly offering different credit card reward schemes or attractive deals on
credit card transfer, as an incentive in a very competitive market, as there
are so many credit cards to choose from. Many people today are finding
themselves in credit card debt which they are having trouble in clearing, with
interest rates so high that they can only afford the minimum payment each
month. This is where the balance transfer deal is so helpful, as it allows you
to actually decrease the amount owed with these monthly payments and it is not
immediately piling back on again in interest. Generally, you can find a card
which will allow you to transfer your balance not only interest-free, but
without any handling fee or annual card fee; at least for the first year.
Cutting down the balance owed and cutting out the accruing interest will make
it much easier for you to clear your debt and get back on track.
Entering into a credit card rewards scheme
provides you with a way to earn gifts and discounts with every pound that you
spend on your card, whether in payment for services or in purchases, and some
of these rewards schemes will offer differing numbers of points on certain
types of purchase. This could be on petrol for your vehicle or for travel
expenses, or even on grocery shopping.
It is important to look carefully at all
the different credit cards on offer before choosing your card; do not be
dazzled by the attractive advantages of credit card transfer or rewards schemes
without also looking very carefully at the annual fees and interest rates, as
you could be signing up for a lot more expense than you bargain for.
