Credit card holders becoming more savvy
February 6, 2007 by admin
Filed under News, News-Credit-Cards
It is something that many of us have done in the past, but the UK payments association Apacs says that fewer of us are making purchases with our balance transfer credit cards.
The organisation warns that people can get stung by spending on the cards, which are originally taken out in order to avoid paying interest.
In the past, many people found themselves transferring their balance to a new card, only to purchase more products.
This can put the cardholder in a dangerous situation as some credit card providers will revert you back to a normal interest rate if a payment is missed.
However, as a generation of cardholders grows up, Apacs believes that this practice is becoming less common.
“The point is that if you are taking out a balance transfer card you should only use it for balance transfers,” said Sandra Quinn from Apacs.
“Don’t do other things with it. I think increasingly people are starting to realise that.”
People who continually transfer their credit card balance between providers in order to benefit from zero per cent balance transfer rates are popularly known as rate tarts.
If you want to join the rate tarts and benefit from good introductory offers, make sure that you will be able to keep up the repayments and avoid making purchases on your new card.
