A report by the Daily Mail is urging consumers to get control of their credit card spending. People have become used to maxing out their credit limits, then transferring their balance to an interest free card deal to reduce their minimum monthly payment. However, the advent of the recession is making it difficult to borrow money in this way, as lenders draw up specific criteria that customers must meet.
When customers are accepted for a balance transfer with another credit provider, they usually incur a fee for the service. These charges look set to rise to 2.92% of the total balance, an increase of .18%.
Credit experts are advising consumers to shop around rather than banking on being accepted for a 0% credit transfer. They are highlighting fixed low rate cards as a viable alternative to a 0% deal, especially if customers currently have a smaller balance.
Compare credit cards and find the best deal to suit your circumstances.