If you are prepared to look for them you can be sure to come by a good credit card deal, however, you have to make sure that your credit rating and history are up to scratch in order to secure the best deal.
In a society that thrives on material possession, people increasingly use their credit card to purchase every material item that they feel they need in life. Market comparison research reveals that the annual percentage rate on plastic purchases has gone from 16.5% to 17.12% in the last six months.
The credit card companies, aware of the increased growth of spending, have made efforts to cut back on their customers’ spending limits and in so doing have made a tidy profit of over £3bn worth of credit. There seems to be no stopping the charges that people are faced with as a result of using their plastic, and with increases of more than 7% on some cash rates and in some cases, 3% on purchase rates, people are struggling to maintain the upkeep of real necessities, such as household bills. The possibility of obtaining a 0% introductory purchase or balance transfer deal is becoming an ever more attractive prospect.
Consumers are advised to shop around for the optimum credit card deal as research shows that there have been 22 purchase rates, 15 cash rate hikes and over 30 increases in charges, including balance transfer and cash withdrawal fees as well as charges for foreign usage implemented in the last few months alone. Providers are tightening their credit card criteria, which has led to a reduction in the number of applications that are being accepted. However, those with an excellent credit record will find themselves still in the running for the best available financial deals.
According to Moneyfacts, the 58 cards of 2006 offering 0% introductory purchase rates for up to 10 months and the 82 offering 0% balance transfer deals for up to a year were a lot easier to obtain, however, in the current economical climate credit does not come cheap and though there are more cards available with longer durations the underlying message is not good. Credit card companies are in a desperate situation and are thus clawing for ways of attracting new customers in order to keep up with the competition that plagues the financial market.
When it comes to looking for a new credit card, make sure you do your homework. Assess and compare the various APRs which are applicable in relation to the common usage of your card, and how best it will protect your needs in a period of economic downturn and disarray. Settle all bills and accounts as well as closing old unused credit card accounts prior to setting up a new contract. Before you obtain a new credit card deal, make sure that your credit history checks out and that there aren’t going to be any nasty surprises down the road; you can check your credit rating with any of the three main credit reference agencies in the UK, Experian, Equifax and CallCredit, all three are accessible online.
Hadassah is an author of several articles pertaining to Credit Cards. He is known for his expertise on the subject and on other Business and Finance related articles.
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