The Hidden Agenda of Extended Free Transfer Rates
The Hidden Agenda of Extended Free Transfer Rates
More and more no interest charged credit card offers are sprouting like mushrooms in the present. However, customers should be wary because as more offers like these pop out, the higher covert fees and expense fees, which are attached to the cards, are becoming too.
In perspective, customers look like they are having a great deal compared to the credit card deals in the past because the interests of the cards are free and the balance transfers have increased.However, this is really not the case; in fact credit card owners are paying more for deals nowadays through hidden balance transfer fees and high standard interests.
According to watchdog, back in 2009, 16 months was the longest that a credit card does not charge any interest. But now, in 2012 the longest that major banks deal is 22 months and among these cards are the Barclaycard Platinum Credit Card with Extended Balance Transfer and the Halifax Balance Transfer Card.
But back in 2009, the most you have to pay for debt fees is 3% in 2012 it has increased to 4%. The Mastercard offered by the Amazon.co.uk even charges 5% from its customers as a transferring balance fee.
Consumers should be wary about the interest rates that their credit cards charge them and not merely look at how long transfer rates are extended. For instance, the Barclaycard Platinum Credit Card only charges a 2.05% fee. This is much lesser than the 3.5% charge of Halifax.
The periods that interest rates are free can extend from 16 months to 18 months. RBS and Natwest offer the longest interest rate free deals at the moment. Others that offer 16 months are the Tesco Clubcard Credit Card, the American Express Platinum Cashback Purchase Card and the American Express Rewards Credit Card.
But then, these companies are finding ways to silently make up for the extended free transfer rates that it offers customers. According to the Bank of England, the APR (annual Percent Rate) of the interest that credit cards generate has grown to 17.3 compared to the 16.5 back on May 2010.
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