0% Credit Cards in the UK
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Brand
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Are
There Lots Of Penalties Associated With These 0% Credit Cards? |
If you are looking to get a 0% credit card, you should shop around for the best offer. There are many that offer 0% on transfers, 0% on purchases or both. Be sure to check the small print carefully. There is usually a onetime charge or fee for transferring a balance to the credit card. The going rate is about 2% of the amount of the transfer. This amount will be added onto the balance owed. If your credit card does not have 0% for purchases, do not use it for any new purchases. You must continue to pay off the balance on the card, however. What you want to end up with is a zero balance by the time the 0% rate expires and the new APR (annual percentage rate) kicks in. If you get to the end of the 0% rate time and you still have a balance you will be charged interest at the rate agreed upon at the time you got the card. You have two choices at this point. You can keep the balance on the card and pay the interest or you can get another 0% card to transfer this balance to. Keep in mind you will pay the 2% fee to transfer the balance and see what deal works best for you. The worst thing to do is nothing. Many people just forget about the time-period and don’t realize they have slipped out of the interest free period. There are sometimes other fees or penalties associated with your credit card. You need to read the fine print for your card before you get it. There are many credit card choices out there now and they are offering many great incentives to choose their card. Try to choose a card with no annual fee. These are fast becoming a thing of the past. If you want to use your card to withdraw a cash advance check on the costs first. Many have steep fees associated with a cash withdrawal. If you use your card abroad, you can expect to pay a currency conversion fee. Usually this fee is around 2.75% of the transaction. There are several cards that do not charge this fee, among them Nationwide BS and Lombard Direct.
When shopping for a card, compare rates, dates, penalties and incentives
to make sure you have the best deal possible for your situation and be
sure you know the details of the card. |
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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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