Credit Card News

Consumers looking to clear their credit card debt by moving their outstanding balances to a 0% balance transfer card will find that the average interest-free term is the longest it’s been since November 2018.

In fact, year-on-year the average number of interest-free days available on a 0% balance transfer credit card has increased by 57 days, up from 520 days in December 2020 to 577 days this month. The last time the interest-free period was longer was when it stood at 580 days.

As well as this, transferring balances has become cheaper over the past 12 months, with the average balance transfer fee falling from 2.22% a year ago to 1.96% now.

A 0% balance transfer credit card is often popular with consumers looking to pay down their credit card debt as the interest-free period makes repaying outstanding balances cheaper and quicker.

As Rachel Springall, finance expert at Moneyfacts.co.uk, explained: “In the run-up to the festive season it seems credit card providers have made overhauls to their interest-free balance transfer offers, which could well be perfectly timed for borrowers looking to consolidate their debts and have more time to pay off their balance without incurring interest. 0% introductory balance transfer terms have lengthened, associated fees to transfer have fallen and there is more choice.”

Landlords have a responsibility to ensure that their properties meet the Government’s health and safety requirements, as well as being at a good standard to attract renters.

This means that buy-to-let (BTL) properties often need refurbishing and, according to a report published by Shawbrook Bank last month, 62% of landlords have undertaken refurbishments in the last 12 months.

Of these, 18% renovated more than one of their properties.

The majority of landlords surveyed by Shawbrook Bank found themselves out of pocket paying for the refurbishments, with 60% using personal savings or investments.

Although, using personal funds to pay for revamping a BTL property may be a good option, there are alternatives for landlords looking to renovate a BTL.

During the recent lockdowns many consumers were able to use their unexpected extra disposable income to repay credit card debt, but for others the boredom of being housebound resulted in them racking up credit card debt.

As the end of the year approaches, now is the perfect time for those who have seen their outstanding credit card balances increase over the past 20 months to take steps to clear their credit card debt. For many a personal loan can be a good way to pay off credit cards, but this option is not best for all borrowers. Here we take a look at the benefits of taking out a loan to pay off a credit card debt and the alternative options available.

Online shoppers may want to consider using a credit card when buying expensive Christmas presents to ensure that their purchases are protected under Section 75 of the Consumer Credit Act, which protects items valued £100 to £30,000.

Under Section 75 the credit card company and retailer are both liable for any breach of contract or misrepresentation of the retailer, which makes it easier for consumers to apply for a refund if the products they have purchased do not meet the terms of the contract, for example they do not receive the product they purchased.

Although shopping on a credit card provides consumers with some extra protection when making purchases online and in-store, it is important to remember that credit card debt can quickly mount up, especially when interest is added, leaving consumers with a significant amount of post-Christmas debt.

One option available to consumers that can make managing credit card debt easier is a 0% purchase credit card. These cards provide an interest-free period on purchases, which means that no interest will be added to the debt on items bought during this period.

Over the past week, a number of credit card providers, including Barclaycard, NatWest and Royal Bank of Scotland, have increased the interest-free period on their 0% purchase credit cards.

For example, last week Barclaycard increased the interest-free period on its Platinum All-Rounder Visa by one month to now offer 0% interest on purchases for 22 months. This card is available to those aged 21 and over who earn a minimum of £20,000. After the interest-free period ends, it charges 21.9% APR.

NatWest, Royal Bank of Scotland and Ulster Bank also increased the interest-free period on their respective Purchase & Balance Transfer Credit Card Mastercard last week. All these cards now offer an interest-free period of 22 months, an increase from their previous 0% interest period of 20 months. The cards are available to those aged a minimum of 18, who earn at least £10,000 and who have a current account, savings account, credit card or mortgage with the bank. They charge 21.9% APR once the interest-free period ends.

Currently, the only card offering an interest-free term longer than 22 months on its 0% purchase credit card is Tesco Bank with its Clubcard Credit Card Purchases Mastercard. This card has an interest-free term of 23 months and is available to those aged 18 and over who earn a minimum of £5,000. After the interest-free period ends, it charges 20.9% APR.