Updated summary boxes could help credit card customers
For many people finding the right credit card can be difficult enough at the best of times, but when credit card providers use technical financial jargon on their marketing materials and application forms this can make the matter even more complicated. Read more
Tags: application, addition, box, credit card providers, order, credit card summary box, Credit Cards, summary box
Credit card companies ‘exploit customers’
October 9, 2007 by admin
Filed under News, News-Credit-Cards
Many credit card providers are using the order of repayment to make extra money out of the customer, new research has found.
When users are paying off debt in small repayments, card companies are directing the money to paying off the cheapest debt first meaning that they can continue to collect money on debts with high interest rates, according to MoneyExpert.com.
The website claims over three quarters of credit card companies employ this tactic which can significantly “sting” a customer who is generally unaware of the order of payments rules.
It found that 76 per cent of credit cards clear cash withdrawals debts last, and with average interest rates at 23.96 per cent on them, it can prove unnecessarily expensive for customers.
Chief executive of the company, Sean Gardner, advised: “As with all credit card deals you need to check that the card you’re using is suited to your requirements.
“If you do want to use your card for cash withdrawals or purchases there are some cards that’ll help you pay those off first to help you avoid prolonging the interest incurred. But those are few and far between.”
Further information about finding the right credit card provider can be found on market comparison sites such as nationsfinance.co.uk.
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.
