- APR - The annual percentage rate is the price you pay each year for money you’ve borrowed, including interest and fees. The representative APR is an advertised rate that a minimum percentage of customers will pay, usually 51% of those accepted. If you’re not given the advertised rate, you’ll get a personal APR.
- Balance Transfer – This is when you choose to move credit card debt you already have to a lower or 0% interest credit card balance, usually for a transfer fee. With a 0% balance transfer deal you can potentially give yourself longer to pay off an existing credit card debt, without having to pay interest. This is as long as you make the minimum monthly payment and stick to any other Ts and Cs. More about balance transfer cards here
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A balance transfer is when you choose to move your credit card debt to another card with a lower or 0% interest rate.
How do they work?
With a 0% balance transfer credit card you can potentially give yourself longer to pay off an existing credit card debt, without having to pay interest. Some 0% rates last for 3 months, some for up to 24 months, one or two even longer.
It can work almost like an interest-free loan, but only if you make sure you plan well and pay it back within the period of the 0% promotional rate, and as long as you make the minimum monthly payment, and stick to any other terms and conditions the card might have. If you don’t make the minimum monthly payment, or you miss the pay date entirely, you run the risk of losing the promotional 0% deal as well.
Did you know that this is the week there are the most online searches for holiday money?
According to Google Trends*, in 2015 there were 100,000 online searches for holiday money in the week ending 4 July, higher than at any other time in the year.
Before you go on holiday this summer, it’s worth remembering that there are many ways you could cut costs before you’ve even touched down.
- Waiting until you get to the airport to make essential purchases makes you a captive customer – you’ve literally got nowhere else to go, so you’re likely to pay a premium for exchange rate and small items. So get your pounds to euro, pounds to dollar sorted out in advance, get your sun cream & toothpaste from pound shops, and book your airport parking as soon as you know your flight times – and you might save a packet.
There’s arguably never been as much choice out there as there is now, and no shortage of account providers and suppliers looking to attract new customers.
And it’s not just switching companies – with energy providers and mobile phone contracts, your own provider may have introduced new deals that are far better for you than the one you’re on at the moment.
In many cases people are still with the banks they joined as students or even children, as many people think it’s more trouble than it’s worth to ensure all their payments and debits are changed.
And with highly competitive markets like mobile phone, energy, broadband or insurance, once an introductory deal is over many people allow their contracts to roll on to higher rates without even realising it – so they end up paying more each month for the same thing.
Missing a credit repayment can happen to everyone – but don’t be tempted to skip or delay your monthly repayments.
Late or missed repayments stay on your credit report for at least six years, so it’s not hard to see how important it is to stay on the right side of repayments. Your credit report can show you if you’ve missed some payments on cards or loans you have.
What happens with missed or late payments?
If you apply for new credit, and lenders see late or missed payments on credit agreements with other lenders, they may be concerned that you will miss payments to them too.
Late or missed payments in the past six years are likely to impact your credit score, meaning that any credit you do apply for and manage to get might cost you more money.