It’s a plastic ocean out there with numerous banks and financial institutions scrambling to sell you their 0 balance transfer credit card. And there are so many kinds of credit cards available in the market that a credit card user gets intimidated and perplexed about which card to choose.
0% APR Credit Cards: The High Interest Rate Solution
Over the past two years, the Federal Reserve has raised interest rates substantially. Consequently, credit card annual percentage rates have followed suit. Nearly all credit cards tie their interest rates to the prime rate, which has doubled to 8% from 4% during the string of rate hikes that began in 2004. This has led to interest rates on credit cards rising by 30% or more. Since August of 2006, the Federal Reserve has kept interest rates steady, and many economists believe …
Lifetime Balance Transfers or Personal Loans?
With card providers’ profits suffering at the hands of rate tarts and rising bad debts, consumers will find the long-term 0% balance deals free from fees becoming few and far between as providers look for alternative means to recoup their losses. Lisa Taylor, analyst from moneyfacts.co.uk comments on the competitiveness of the growing trend for providers to issue lifetime balance transfer deals.
Avoid Credit Card Balance Transfers Pitfalls
Despite many card providers suffering falling profits and staggering rises in the level of bad debts, competition is still rife within the market and providers continue to launch headline best buy deals. Andrew Britchford, credit card analyst from Moneyfacts.co.uk explains how consumers can avoid some of the common pitfalls associated with credit card deals and make the best of the offers available. Choosing the right card can be more complicated than you may think.