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Credit
Card Advice
Credit Cards for shopping and online services have become
an integral part of many peoples lives. Are
they a friend or foe?
Sensibly
used credit cards and store cards can offer a an easy and
'cashless' method of payment. However there are plenty of
conditions attached which vary widely between the hundreds
of cards on offer today.
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Telephone
Helpline
For
friendly, professional and informal advice we are available
8.00am to 10.00pm, Monday to Friday, on 08704 28 28 29*.
The
credit Helpline is brought to you by Asset Design, specialists
in providing sensible financial solutions. To find out more
visit the Asset
Design website.
Advice
Notes
The majority of people looking to get a credit card
compare interest rates to decide which card to chose. Unfortunately,
the credit card companies are aware of this and hide charges
and other costs in the small print. Find out where else you
should check. Click Through to The Relevant Advice
Section:
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Credit
Card Introductory Offers |
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Save
Money Now!
The Credit Helpline helps thousands of families
reduce monthly payments, reduce interest payments
and consolidate debt - to reduce monthly outgoings
and improve their lifestyle. Click
here to
see what you could reduce your monthly payments
by. |
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We
are innundated with offers from credit card companies,
each with a combination of inticing offers such as interest
free periods on purchases; introductory rates for a
limited time; and currently most popular 'balance transfer'
offers, where an outstanding balance can be transfered
from a current credit card, with an alluring intoductory
rate. Some credit card companies even offer this transfer
facility to consolidate your bank overdraft or personal
loan.
If
you are seduced by these types of offers, it is advisable
to look into the market thoroughly before you commit;
Be aware that there is a hugely varied assortment of
introductory packages offered by credit card companies.
Remember to check these essentials before you are caught
out:
• How long is the introductory period valid for
on the transfer
• What rate is then applied to this transfer amount
when the introductory period ends
•
Is there a different credit charge for all other purchases
you make on the card besides the transferred amount
• Do you have to pay of all of the balance transfer
(and credit charges) before you start to pay off credit
charges
on additional purchases made (an important point as
such purchases may be charged at a much higher credit
rate)
A
helpful hint from the Credithelpline: Credit Card balances
have to be paid back monthly with a minimum repayment
amount. Do not end up overburdening your monthly outgoings
by meeting these commitments. Equally beware of ending
up taking many years to repay a credit balance - in
the process costing you a large amount of money in credit
charges and fees.
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A
Simple Guide to Credit Cards |
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In
the past credit cards have been obtained through high
street banks and building societies. However, the recent
explosion in internet banking has provided us with a staggering
array of online banks and lenders, 'loyalty' cards, affinity
cards and many more besides. Each offering differing incentives
to spend more with them.
Two of the most popular credit cards are Visa and MasterCard
with a massive global coverage. When looking at the vast
array of cards on offer on the market, pay attention to
the following in particular:
• The standard variable interest rate
• What is the interest free period
• If there is a cash access option what are the
charges
• Does the credit card provide free insurance on
certain purchases
• Does the card offer additional incentives such
as free travel insurance
• Is there an annual fee purely for having the card
Credithelpline reminds you that:
If your application for a credit card is approved, there
will be a set credit limit. Don't take this as your money
and spend it all at once - it will have to be repaid.
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Credit
Cards Abroad: Holiday Awareness |
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Fancy
a sunny summer holiday far away? Thinking of taking, and
using, your credit card? Be mindful that most cards will
charge a convertion fee for converting into a foreign
currency, this can be applied to drawing money at cash
points, online transfers, purchases on the card and many
more. Also be aware that the UK is rare in the fact that
most banks will not charge you for use of a cash point,
it is worth finding out the charges for this service at
your destination, you may well be surprised; they may
also start charging interest from the moment you withdraw
the money. Forward planning is essential, especially
when taking your card on holiday.
A helpful Credithelpline hint: Check with your card issuer
before you go.
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Review
Credit Card Offers |
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There
are an awful lot of credit cards available these days;
introductory offers and standard terms and conditions
change on a regular basis. These sites give an updated
comparison of the major card companies:
The
Guardian online money & credit cards
The
Sunday times online money
The
Daily Mail / Mail on Sunday Money Centre
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Students
be Warned! : 'Avoid credit card debt' |
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Consumer
rights campaigners today warned students to avoid being
seduced into applying for a credit card because of "gimmicks"
such as free cameras and book tokens. Expensive credit
card debt could "push students over the edge",
claimed the National Consumer Council (NCC). Read the
full story from Guardian
Money
Latest news, facts and figures on students and their
money >>>
Press
Association
Thursday September 18, 2003
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Credit
Card Charges - What does the Government Say! |
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Changes
in the way credit card companies provide information to
their customers are being recommended by the Treasury
Select Committee in response to continuing concern about
their practices... read
more from parliament.uk
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Are
credit and store cards Fair! - Competition Commission
set to investigate |
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Are
store cards notorious? This sector of the credit market
has received considerable and high profile media attention
of late – and all for the wrong reasons. Complex
terms and conditions have allowed card providers to levy
heady penalties for those customers that fail to make
their monthly payments on time.
And this on top of a range of cards in a sector that seem
to boast average interest rates of 30 per cent and more.
It must certainly have provided healthy profits for the
finance companies that dominate this card sector but trouble
is looming with the threat of a full scale Competition
Commission investigation into their industry.
What really got the ball rolling was a Treasury Select
Committee, which last year ‘invited’ the most
senior of industry figures from the banking world to ‘discuss’
whether there is genuine competition in the credit card
market. And importantly how clear for the consumer it
is to confirm what charges are applicable to the myriad
of cards available particularly with endless offers such
as balance transfers; honeymoon periods and lifetime offers.
Many of you may well recall part of this investigation
as Matt Barrett (chief executive of Barclays) remarked
that he did not borrow on his credit card because it was
too expensive and advised his four children to do the
same.
The Office of Fair Trading (OFT) has been investigating
the store card sector and their report is impending. Now
they may declare ‘a clean bill of health’
for the sector but the experts are predicting that they
will hand the matter over to the Competition Commission
for a closer look.
With the Royal Bank of Scotland announcing profits of
7 Billion pounds analysts confirm that the Banks are accounting
for a greater share of overall profits from the credit
card sector. And worryingly we Britons are taking longer
to pay off credit card debt (debt which is not paid off
for three months has more than doubled in the past 10
years).
Save
Money Now!
The Credit Helpline helps thousands of families
reduce monthly payments, reduce interest payments
and consolidate debt - to reduce monthly outgoings
and improve their lifestyle. Click
here to
see what you could reduce your monthly payments
by.
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So
the big question is despite the Bank’s record profits
are they profiting excessively from the credit and store
card sector? Head of money advice at the Citizens Advice
Bureau, Nick Lord, said: "The fact that interest
rates, which average about 15 per cent, are so high compared
to the Bank of England's base rate, and to other forms
of unsecured lending, suggests competitive forces are
not performing."
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Remember
to read the smallprint before applying for a card as you may
not qualify for the advertised rate. And on some 0% transfer
deals, conditions apply Please note The Credihelpline cannot
take responsibility for the content of external websites. The
Credithelpline does not endorse any credit card. E&OE
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*Telephone
calls are monitored and may be recorded for training
purposes |
The
Credit Helpline is provided by Asset Design
Limited, a team of experienced advisers operating independently
from the finance houses.
They
work closely with Advice Bureaus and debt counsellors
to help people, regardless of circumstances (whether
self employed or retired, with a good credit rating
or with CCJs, tenants or home owners). Our aim to help
our clients save money by managing debt more successfully
and aiming to procure BETTER mortgage, remortgage and
loan rates and terms. |
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| ADVICE:THINK
CAREFULLY BEFORE SECURING DEBTS AGAINST YOUR HOME. YOUR
HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS
ON YOUR MORTGAGE
Head
office: Shaw House 110-114 Barnards Green Road Malvern
Worcestershire WR14 3ND |
site
production MRA |
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Helping
you with:
Credit card advice Credit card helpline
Credit card offers
Credit card charges
Card consolidation
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Design Limited is authorised and regulated by the Financial
Services Authority
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HELP & ADVICE |
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Debt
Consolidation
See by how much you couold potetnially reduce your monthly
repayments each month with our online calculator |
Credit
Card Advice
Advice on analysing credit card offers; holidaying
abroad; reviewing current offers
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Retirement
Draw an Income from your property in retirement |
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| LATEST
NEWS |
Visa
Charges Unlawful!
An agreement between Visa and banks which sets the fee retailers
pay each time customers use its credit and debit cards has today been
deemed unlawful by the competition watchdog. >>> |
| LATEST
NEWS |
Credit
Card Companies Under Pressure from OFT
The Office of Fair Trading says default charges are too high but the
companies are fighting to keep levies worth an estimated £1bn
a year! >>> |
| LATEST
NEWS |
American
National Debt Uncontrollable!
The national debt stands at about $8 trillion and goes up $1.5 billion
a day. Likewise, the level of consumer debt is out of control and
growing rapidly, too. Credit card debt alone now stands around $800
billion or about $8,500 per family. |
| ARCHIVE
NEWS |
Are
you managing your money effectively? >>>
Taking your credit card on holiday? >>>
Are you aware of identity theft? >>>
Are you a student thinking of applying to university? >>>
The total UK personal debt broke through the £1 trillion barrier
in July 2004 and is likely to break through the £1.1 trillion
barrier in the middle of 2005. >>>
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