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Credit Card Balance Transfers
10 ways to deal with worries about your mortgage >>>
The top ten credit myths >>>
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Money News - Press Release >>>
Credit Card Balance Transfers
Q. Why transfer an existing balance to a new credit card?
A. The savings to be made are simply enormous.
If like many, you have debts on credit or store cards, shifting to a new card with a special ‘balance transfer' offer is a must.
The cheaper interest rate, ideally 0% on the new card, would mean more of your repayments going towards reducing what you owe, rather than paying the lender more interest. This will make you debt free quicker.
There are a huge number of lenders offering great deals for balance transfers. Picking
the right one for you depends on whether you are prepared to shift the balance every
6 months or so, depending on when the preferential rate -
If this sounds like too much hassle, then you need to choose a card that has a low balance transfer rate for the life of the card.
If you are prepared to do some work yourself then you can opt for a 0% balance transfer rate card – there are always good offers out there. RBS Credit Cards are usually competitive but do shop around.
Always make sure you check out the transfer fee being charged as this can vary from card to card. Simply apply online for a new card and then transfer the balance. Remember though to never spend on this card – just transfer the balance and put the actual card in a drawer.
Why put the card away in a drawer?
Well, most of these cards don’t offer a preferential rate on purchases made using
the card. Which means you could end up being charged a higher rate of interest for
anything you buy using the card.
By way of example -
Our advice is to not think of the balance transfer card as a credit card – think of it more as a loan which needs a monthly repayment. Then take a note in your diary or calendar for 6 weeks before the preferential rate runs out to apply for a new 0% card.
This is commonly know as ‘tarting’. It is of course a a perfectly legitimate way to reduce debt in a cost effective way.
It’s very important to remember to transfer the balance to a new card before the preferential rate runs out, or you will end up being charged interest.
If, on the other hand you have debt that you just want to shift to a lower rate, then you can opt for a card that will charge a very low rate of interest for a longer period than a 0% card will, perhaps even for the life of the card.
Again there are various to choose from. My advice is the same as for ‘tarting’ – don’t look on this card as a credit card – think of it as a long term loan.
Be careful using long term cheap credit cards
All these cards will offer enticements in order to get you to spend on them,i.e.
cash back for spending. Yet do this, and all benefit from the cheap balance transfer
will be lost.
So search around for the best deals which are changing quickly. Check out RBS Credit Cards and the Nationwide online.
Take advantage of these enormous savings and start your journey to being debt free.
10 ways to deal with worries about your mortgage
Mortgage rates are on the rise again – and, as banks struggle to come to terms with turmoil in the global money markets, homeowners are struggling to keep pace with the growing cost of their mortgages.
According to a recent study, more than 1 million people are resorting to using high interest credit cards to cover their mortgage payments leaving them at risk of eviction or repossession. Repossessions rose 65 per cent during 2006, according to the Council of Mortgage Lenders, and are expected to escalate as people come to terms with household debt, which is now running at 150 per cent of average annual income.
But losing your home isn’t inevitable, even if you’re having trouble making your
mortgage repayments. Here are some ideas that could help you to keep the roof over
your head.
1. Speak to your mortgage lender – they will do their best to help. For example,
if you have a repayment mortgage, you could switch to an interest-
2. Get advice from a specialist charity or organisation. Try Citizens Advice – you’ll
find a local office in the phone book or at www.citizensadvice.org.uk – or the Consumer
Credit Counselling Service (CCCS) at www.cccs.co.uk. There is no need to pay expensive
private agencies – these services are free.
3. Check your credit report with CreditExpert. This is the personal history of the
credit you have taken out, from your mortgage to catalogue accounts. It will give
you a snapshot of how much you owe and how well you are coping. Lenders look at your
credit report when they decide whether to make you an offer and what terms to set,
so it’s crucial that it’s up to date and accurately reflects your position. A repossession
will stay on your credit report for six years – the same length of time as an Individual
Voluntary Arrangement or bankruptcy – and could make it difficult for you to get
credit in future or result in you paying higher interest. See your credit report
for free, here.
4. Work out a budget. Start with what you are spending now and see what you can trim
– remember essential bills, such as utilities, council tax, insurance and food. You’ll
find a budget calculator on the website of the FSA, the UK’s financial watchdog,
which also provides a mortgage calculator – go to www.moneymadeclear.fsa.gov.uk.
The Council of Mortgage Lenders at www.cml.org.uk also offers a mortgage calculator
that allows you to see the impact of any changes to your mortgage or level of payments.
5. Pay what you can. Even if you can’t manage the full amount, you should pay as
much as possible. This shows your lender that you are making an effort and may increase
your chances of negotiating an affordable deal.
6. Investigate financial help – for example, you may have mortgage protection insurance
or be able to claim benefits.
7. Supplement your income. If you have a spare room, you could take in a lodger –
up to £4,250 a year is tax-
8. Look at taking out a new loan to pay your debts. Shop around and you could find
a deal that works out cheaper than paying off a series of individual bills – your
credit report will help you to see where you might make savings. But be careful –
if it is secured against your home, you could be putting it at even greater risk
if you miss any repayments.
9. Don’t hand back the keys. If you’re desperate, it’s far better to sell your home
yourself – at least you’ll still have somewhere to live while you market it. If you
give the keys back to your lender, you will be responsible for the mortgage until
it’s sold and you could have to pay any shortfall if the lender sells it for less
than the value of the mortgage.
10. Be wary of sell-
• Your credit report is the first place to look when you’re worried about your borrowings
– it gives you an instant snapshot of how well you are managing your finances. You
can see your Experian credit report as often as you like with a free, 30-
Brought to you by Pointme2it partner Experian.
Don’t forget Pointme2it’s -
The top ten credit myths – and the truth behind them.
Knowledge is power when it comes to getting the credit deals you want. Start by understanding the impact your credit history has on the type of offer you get – or whether you get an offer at all.
Your credit report contains your full credit history, it lists cards, loans, mortgages and other credit accounts, repayment track record and other information such as bad debts, IVAs and bankruptcies. Lenders use this, along with details from your application, to decide whether there’s a good chance that you’ll repay what you owe, so it’s crucial to understand what items will and won’t influence them.
Here are the top ten credit myths – and the truth behind them.
1. Previous occupants of my address affect my credit rating
These days it makes no difference to your credit rating if the previous occupant
of your home was a millionaire or a bankrupt as long as you never shared a financial
connection – lenders are only interested in your ability to repay them on time and
in full. They do like to see stability, though, and if you’ve recently moved they
will want to know your previous address, so they can check back.
2. Credit reference agencies help make lending decisions
Credit reference agencies compile and hold your credit report securely, they don’t use the information to make lending decisions. Lenders use the credit report data to help make decisions and perhaps score your application, each using a unique set of criteria to make a decision. With CreditExpert you can see your Experian Credit Score, based on your credit report, which will give you a good indication of how lenders will see you. See your credit report free today.
3. Past debts don’t count
Unfortunately, they do. Court judgments for non-
4. If you’ve never borrowed, you’ll get the best deals
You’d think that someone with no history of debt would be attractive to lenders but
the reverse is often true. Lenders want you to have a history of making repayments
on time and in full – if you’ve never borrowed, they have no way of knowing how you’ll
make payments in the future and may even reject you. They’d often rather see a credit
report showing a few well managed loans or cards and regular, reliable repayments.
5. I could be on a credit blacklist
No, you couldn’t – they don’t exist. Your credit rating doesn’t take account of the
area where you live, your race, ethnic origin, religion or gender. Factors lenders
do consider include your repayment history and how much you already owe. Essentially,
they want to be sure that you aren’t taking on more credit that you can comfortably
manage.
6. Friends and family living at my home affect my credit rating
Unless you share a joint financial connection with any of them – for example, a mortgage
– friends and family will have no impact on your credit rating. If you do have a
joint account or have made joint credit applications, their name will be listed in
your credit report under Financial associations. When you apply for new credit, lenders
may see your financial associate’s credit report as well, as their circumstances
could affect your ability to make repayments.
7. Repaying your credit cards in full depresses your credit score
This urban myth is also nonsense. Making repayments in full every month is likely to result in a better credit score, because it shows you can afford your borrowings. You’re more likely to get a lower score if you make late payments and let interest – and your total debt – rack up.
8. It doesn’t matter how many credit accounts you have
Lenders want to be sure that you can afford the credit they grant, so they prefer
it if you don’t already owe large amounts on multiple accounts. They can even take
into account the amount you could borrow against your credit limits, so it’s sometimes
best to close down unused accounts and limit the number of new applications you make.
Finally, don’t fire off random credit applications, as these will be registered on
your credit report – ask for quotations before you apply and these will only be seen
by you on your credit report. If it looks as if you’re trying to borrow a lot in
a short period of time, lenders may think you’re desperate for money or even suspect
fraud.
9. You only have one credit score
Each lender uses its own method to calculate credit scores and some even use a different
formula for different products, such as loans and cards. So you could get three different
credit scores if you made three applications in a single day. Your credit history
also changes over time, as your circumstances change. For example, missing a few
repayments could lower how you are scored, while paying off a debt could give it
a boost.
10. Items in your credit history stay on file forever
Your credit report is designed to give lenders a good picture of your recent and
current position – they’re not interested in seeing that a 40-
• Build a better understanding of your credit history – see your Experian credit report with a free trial of Credit Expert, the UK’s leading online credit monitoring and identity fraud protection service.
Get your FREE Experian credit report now.
Latest Money News -
Press Release October 2008.
Post Office® Instant Saver -
As you are aware, the Post
Office Instant Saver is run by the Bank of Ireland which has led to increased interest
in this product. For more information visit www.postoffice.co.uk
Press Release October
2008.
Nationwide is the largest building society in the world, with 12 million customers.
Our home insurance is the leading product online in terms of growth over the past
six months and is very competitively priced, with an online discount and a double-
Unlike some competitors we make
We are the second largest mortgage provider in the UK
and the largest online mortgage provider. We also provide a complete end to end online
application, with only the Yorkshire Building Society having similar.
October 2008.
We've selected Quotezone to provide a fast way to get the best offer
on your insurance. Fill in your details just ONCE in this easy form and the system
will do the rest -
You can get quotes from up to 50 insurers in under 2 minutes!
You're in safe hands because Quotezone deals only with trustworthy FSA-
Press Release September 2008
Post Office® director of insurance Phil Ashkuri said: ?We advise people to look carefully when choosing new insurance cover as many providers may offer great promotions but the detail of the policy may not deliver the right level of cover or value for money.
"But, there are things people can do to ensure they get the best possible deal. For
example, checking your level of excess can help reduce your premiums."
Post Office
travel insurance covers scheduled airline failures as standard.
For more information
visit www.postoffice.co.uk
Post Office® Car Insurance includes:
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beyond repair and under 12 months old
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Post Office® Home Insurance includes:
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Pointme2it adheres to strict Financial Services Authority (F.S.A) regulations.
For
financial advice concerning any articles on this site please consult with an Independent
Financial Advisor.
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