Thursday, September 14, 2006
Category:
Personal Finance Tips
Those looking for a good credit card rate will be relieved with HSBC’s announcement that its new credit card will offer 0% APR.
Balance transfers will be kept at zero per cent interest for the first 12 months allowing cardholders a better chance to reduce the cost of their borrowing.
The interest free period for balance transfers has actually been doubled by HSBC, who are now in the minority of providers currently offering zero per cent interest on balance transfers for a full 12 months. This latest deal also gives cardholders the chance to use their cards for the first three months without incurring any interest charges.
Interest will only be charged from the date a transaction arrives on the account, rather than the day the transaction is made, giving cardholders a few more days grace. Along with the interest savings, HSBC can also offer customers advanced fraud detection services which keep an eye on any unusual activity on cardholders’ accounts.
Commenting on the new market leading balance transfer deal, HSBC head of consumer cards Spencer May said ‘At HSBC we continually look for ways in which we can help borrowers better manage their debt and we recognise that people are becoming more careful with their credit card borrowing. This is evidenced by recent reports which show UK credit card borrowing falling in four out of the last six months.’
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Those with multiple credit cards who find that their 0% balance transfer deals are coming to an end could consider consolidating their debts with a secured homeowner loan. Rather than worrying about which card needs to be paid and when, multiple payments would be wrapped into one straightforward monthly repayment by opting for a secured homeowner loan over a term of up to 25 years. Repaying borrowing over a longer term will however increase overall interest charges.
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