0% Credit Cards in the UK
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Brand
Comparisons |
How
Do No Interest Credit Cards Compare To Fixed-Interest Cards? |
Fixed interest cards start charging interest beginning immediately. There is no grace period. If there is a balance at the end of the month (or statement date) the appropriate interest will be applied to the account. Fixed-interest credit cards generally have a lower APR (annual percentage rate) than 0% credit cards. However, according to some financial advisors, this isn’t always true. They advise you to shop for a credit card as you would for anything else. Make sure that the offer you get is what you want.
Many 0% credit cards now offer 0% on transfers as well as new purchases and some offer incentives such as fly miles or points. Still others offer competitive interest rates after the initial 0% interest period. Make sure you know what you are getting into when you choose a credit card. Many companies are good at telling you about the perks up front but the other charges and fees are hidden in the fine print. In the past there have been annual charges for some credit cards. Be wary of that now. These annual charges have pretty much been eliminated by companies over the past several years. Also be careful of responding to the first credit card company that sends you something in the post. Many send out their offers telling you that you are already ‘pre-approved’ for their card. This is just not true. When you respond to an offer they will check your credit just as any credit card company will. Don’t jump at the first company to send you a mailing. If you feel you need to open a new charge account, check on-line for comparison of different company rates and benefits. No
matter what type of credit card you get, the amount of credit you can
have and the interest rate may be determined by your credit history and
income. Your credit score
is determined, in part, by how much credit you have used of your available
credit. The general rule
of thumb is to have a balance of no more than half of your available line
of credit for each credit card.
For example, if you have a credit card with a credit limit of £5000,
you should have a balance of under £2500. |
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Kinds of Cards |
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Copyright 2008 0% Credit Cards UK Guide Articles
By Kate Spencer. All rights reserved |
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