0% credit card offers need second look
If you are clever and know how to play the market, you can get rid of credit card interest entirely with the help of 0% credit card offers. However, it will take time and effort on your part, along with a keen and cunning mind. With over one 1.2 billion purchases made on credit cards each year, it would be satisfying to know that you are not paying a penny in interest on your purchases. There are two different types of 0% cards, both of which have their advantages and disadvantages. In order to fully appreciate these offers and gain the most benefit from them, you need to do a little bit of homework.
There are two types of 0% credit card offers with 0% on cash purchases and 0% on balance transfers. Many cards are now offering both of these services, but there are restrictions. The length of time that the 0% offer period lasts varies depending on the provider. If you have an existing balance on a card then it may be worth looking at the 0% balance transfer option so that you can transfer your balance and reduce your interest payments. If you want to make one-off cash purchases and pay the total amount back over a number of months, then the 0% cash purchases option will be more attractive.
In 2006 £133.2 billion was spent on credit cards in the UK and this amount keeps rising every year. If you are one of the many people who spend regularly on credit cards, and haven't kept up with the payments quite as well as you had hoped, then you will be able to see how this type of card can help you financially. It gives you a chance to halt interest charges completely and pay off your debt, rather than just paying off a small amount of the original balance and a large amount in interest payments each month. If you are one of the people barely making your minimum payments each month, this could make a big difference to your finances.
The 0% on cash purchases card is completely different. This type of 0% credit card allows you to make purchases on the card without any interest being added to that amount for a specific period. Although these offer periods are shorter than the 0% transfer cards, it is still a reasonable length of time. Currently the average interest-free offer is around 3 months.
Many cards offer both types of 0% deals. However, if you transfer a balance onto a 0% balance transfer card and then take advantage of the card's 0% purchase offer, you may end up actually paying more. If you can pay off the balance in full before the end of the purchase offer ends, then you can avoid additional interest charges. If you don't pay off the purchases in full before the purchase offer time expires, you will be charged interest. However, over 3 million people in the UK have more than five cards so you can choose to have one card for your balance transfer and one for your cash purchases, giving you the ability to take advantage of both types of 0% offer available.
Both types of 0% offers change frequently, as they are amongst the most popular credit card deals available. By taking into account all the advantages of using 0% card offers, you should have some idea of how you can make these cards work most effectively for you. Once you have a feel for these types of card, you can theoretically make interest vanish for a very long time. However, you do need to consider if card hopping could affect your credit rating and keep in mind that regular transferring is become harder to do as the industry begins to wise up.
There are two types of 0% credit card offers with 0% on cash purchases and 0% on balance transfers. Many cards are now offering both of these services, but there are restrictions. The length of time that the 0% offer period lasts varies depending on the provider. If you have an existing balance on a card then it may be worth looking at the 0% balance transfer option so that you can transfer your balance and reduce your interest payments. If you want to make one-off cash purchases and pay the total amount back over a number of months, then the 0% cash purchases option will be more attractive.
In 2006 £133.2 billion was spent on credit cards in the UK and this amount keeps rising every year. If you are one of the many people who spend regularly on credit cards, and haven't kept up with the payments quite as well as you had hoped, then you will be able to see how this type of card can help you financially. It gives you a chance to halt interest charges completely and pay off your debt, rather than just paying off a small amount of the original balance and a large amount in interest payments each month. If you are one of the people barely making your minimum payments each month, this could make a big difference to your finances.
The 0% on cash purchases card is completely different. This type of 0% credit card allows you to make purchases on the card without any interest being added to that amount for a specific period. Although these offer periods are shorter than the 0% transfer cards, it is still a reasonable length of time. Currently the average interest-free offer is around 3 months.
Many cards offer both types of 0% deals. However, if you transfer a balance onto a 0% balance transfer card and then take advantage of the card's 0% purchase offer, you may end up actually paying more. If you can pay off the balance in full before the end of the purchase offer ends, then you can avoid additional interest charges. If you don't pay off the purchases in full before the purchase offer time expires, you will be charged interest. However, over 3 million people in the UK have more than five cards so you can choose to have one card for your balance transfer and one for your cash purchases, giving you the ability to take advantage of both types of 0% offer available.
Both types of 0% offers change frequently, as they are amongst the most popular credit card deals available. By taking into account all the advantages of using 0% card offers, you should have some idea of how you can make these cards work most effectively for you. Once you have a feel for these types of card, you can theoretically make interest vanish for a very long time. However, you do need to consider if card hopping could affect your credit rating and keep in mind that regular transferring is become harder to do as the industry begins to wise up.
About the Author:
Josh White writes for various websites mainly in the financial industry. You can read more about Credit card offers and the 0 percent credit card here.
posted by Debt Consolidation Loan at
3:19 AM
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