Choosing a Card

[Baby Jane]

I have a question. Is there really a credit card that carries 0% interest rate?

Yes there are credit cards that carry 0% interest rate. I believe though that this was a result of the financial crisis. If they didn't do it, then people would not spend money anymore.

[Stinson]

You also need to ask how the finance charge is computed. Some companies practice what is known as double billing. Here's how it works.

Let's assume you have a balance of £500 with an annual percentage rate of 11.9%. If you pay just £200 at the end of the period, then you would have a finance charge of around £4.08. Double billing computes it differently. Say your the balance on your previous month was £1000. Add that with your current balance and then averaging would give you £750. Which means your finance charge is now about £6.11.

And that is why, as Mark mentioned earlier, you should always pay your balances in full.

[Margaret]

Yes there are credit cards that carry 0% interest rate. I believe though that this was a result of the financial crisis. If they didn't do it, then people would not spend money anymore.

But its not always offered.

[Rose T]

You also need to ask how the finance charge is computed. Some companies practice what is known as double billing. Here's how it works.

Let's assume you have a balance of £500 with an annual percentage rate of 11.9%. If you pay just £200 at the end of the period, then you would have a finance charge of around £4.08. Double billing computes it differently. Say your the balance on your previous month was £1000. Add that with your current balance and then averaging would give you £750. Which means your finance charge is now about £6.11.

I've experienced this before. Was surprised when it first happened and couldn't understand why they did this. Know what I did? Went to a new company.

[Rose T]

And that is why, as Mark mentioned earlier, you should always pay your balances in full.

That too.

[Elaine]

Yes there are credit cards that carry 0% interest rate. I believe though that this was a result of the financial crisis. If they didn't do it, then people would not spend money anymore.

0% interest rates are often introductory offers that lasts for about six months to one year. Be sure to inquire what their current rates are so you won't be caught unawares.
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[Allison]

0% interest rates are often introductory offers that lasts for about six months to one year. Be sure to inquire what their current rates are so you won't be caught unawares.

I see. So its more like enticing the customer to change companies.

[james26]

I see. So its more like enticing the customer to change companies.

Yes. Its the old "hook and switch" they hook you in on a low rate and then change it after the introductory period has finished. People who transfer their balance on a regular basis are known as "swap tarts" I think. Used to be more popular several years ago when there was no transfer fee. But now nearly every bank has a transfer fee of around 2%. It can still be worth it though if you are using one of the bad credit cards, like these horrors.

Northern Bank Platinum currently at 48.9%
Northern Bank Gold currently at 36.2% with a nice £132 per QUARTER fee. Yikes.

Compare those to the Barclaycard Simplicity at 6.80% - A credit card with a low APR on purchases and balance transfers with no BT fee. This is a meaningful alternative to short term 0% offers,

[William01]

There are several credit card companies. You should not be confused. You should choose according to your budget and need .The best way to get good deal is comparison several quotes of credit card companies on internet.Thanks for such post.

[majimbo]

A credit card is a form of borrowing that often involves charges. Credit terms and conditions affect your overall cost. So it's wise to compare terms and fees before you agree to open a credit or charge card account. The following are some important terms to consider that generally must be disclosed in credit card applications or in solicitations that require no application.


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