Credit Card Blog

If you have a debt with a credit card, I urge you to keep an eye on the interest rate. This isn’t a scare tactic, and people shouldn’t go running to see their credit card statement, but there has been a bit of talk recently and some bad reviews online of people who have suddenly seen their interest rates rise – some of them even double.

If you don’t have any debt or can move your balance easily, then any interest rate increase may not affect you too badly. Imagine though, if you have an outstanding balance of a few thousand pounds. If the interest rates suddenly double then the monthly payments are going to be much higher. 

You can compare some of the best interest rates on the market at the student credit cards comparison page.

The problem of increasing interest rates is especially important if you’ve transferred a balance, and are nearing the end of your promotional period. This is the time you really want to be thinking hard about how you’re going to clear the debt, or if this is not possible, what other credit card you are going to move your debt to. Remember, this is not something you want tot leave to the last minute – it’s worth doing your research in advance.

One thing I would like to draw your attention to though, is that many promotional balance transfer periods require you to move the balance with a set time after opening the card. You can’t get a Virgin credit cards for example, with a 16 months 0% interest on balance transfers promotion, and then just use the promotion 22 months down the line

This entry was posted on Tuesday, January 6th, 2009 at 1:30 pm and is filed under Uncategorized.
You can leave a response.