Credit Cards Online Information

IT COULD be over for the days of switching credit-card companies to take advantage of 0 per cent interest deals, as lenders cut back on offers and hit borrowers with hefty transfer fees, writes Lorna Bourke.

Lisa Taylor, an analyst at Moneyfacts, which monitors all credit cards, says, "Providers are resorting to alternative methods to recoup their losses, such as adding fees and withdrawing incentives."

Halifax One Visa offers balance transfers with 0 per cent interest for a year, but charges two per cent of the amount transferred in fees.

Others offering nine months interest-free for balance transfers include Lloyds TSB Rewards Amex card, Marbles Internet, Sonycard, Virgin Mastercard and Alliance Leicester Online Mastercard or Visa.

Remember, if you use the balance transfer facility, it is wiser not to use the card for any further purchases or cash withdrawals. This is because the credit-card companies deduct any monthly payments you make from the transferred balance on which you are paying no interest.

Only when that is paid off, do they deduct it from the interest- bearing purchases. In other words, you are negating the benefit of being able to "park" balances interest-free.

It is essential to set up a standing order for the minimum payment each month or you could find yourself paying high penalty charges for late payments.

# posted by Medical Information : 3:43 AM