Posted by Peter Brady on Wed 23rd August 2006 at 07:00 AM, Filed in Credit Tips
If you’re going to use your credit card in a foreign country then you may be in for a rather unpleasant surprise on your return. Many cards include a “currency conversion fee” of up to 3% of the value of each transaction. Therefore when you pay up your £100 for that special meal in Spain you’re really going to be paying £103.
There are cards out there which don’t charge a fee of which Nationwide has been my favourite for many a year now. Lombard Direct also do a currency free conversion offer but these cards are in the minority.
As always thoroughly check the small print to see if your lifestyle and requirements match the card offer.
Posted by Peter Brady on Wed 23rd August 2006 at 07:00 AM, Filed in Credit Tips
As a rule, withdrawing cash on credit cards can be a very expensive business.
First off, you’re going to be paying very high rates of interest from the instant that you withdraw your cash. On top of that you will be paying interest on accumulated interest if you don’t clear the balance.
Secondly, as a rule, credit card operators charge extortionate fees for withdrawing from a cash machine or over the counter. Fees can vary but they are normally in the region of 2% per withdrawal. Therefore, it’s a bit of a no brainer to avoid cash withdrawals at all costs.
This term is pretty self explanatory, but in essence you have a period of 0% interest on your credit balance. Most bog standard cards offer this as a matter of course, for periods of 6 months and more on transferred balances. What you really need to keep an eye on is what the interest rate will revert to once outside the 0% period. This can catch you unawares if you forget to pay the balance off, or forget to transfer to another 0% deal elsewhere.
With spiralling levels of personal debt many people are turning to Bankruptcy as a way out. But what exactly is it:
In summary Bankruptcy is the status of being legally declared unable to pay your debts. Proceedings are enacted that allow a person or organization to liquidate their assets to pay a reduced amount to their creditors or that allow the rehabilitation of the debtor by requiring creditors to accept reduced payments from future earnings of the debtor. A declaration of bankruptcy will remain on a person’s credit report for varying lengths of time. Declaring bankruptcy is generally considered a last resort as it will effect your ability to obtain any form of future debt, including mortgages.
Annual fees are the annual cost of membership to a particular credit card account. Nowadays, savage competition has forced most credit card companies to produce offers that omit annual fees. However, some fee based cards remain, so keep your eyes peeled.
If you’ve been with the same credit card for some time it might be worth checking your terms and conditions to see if you’re paying an annual fee. If so you will almost certainly be able to find a better deal elsewhere.
