Credit Card Watch

Choosing Cheap Credit Cards to Cut Down Existing Debt Costs

Do you have debts on credit or store cards? If so, by transferring them to cheaper credit cards, like a balance transfer card, you could potentially save yourself hundreds of pounds.

A balance transfer card repays debts on other credit cards, so you will then owe debt to your new card, hopefully at a cheaper rate.

Most deals are only available to new cardholders, and the arrears will need to be repaid within a set period of opening the new card account, or the debt will shift to a much higher interest rate.

Being eligible for one of these cards depends on a number of factors, such as how much debt you have and your credit rating. However, when applying you should also take into consideration how quickly you can repay the amount outstanding and how good you are at managing your finances.

Be aware that if you have regularly used cards to transfer a balance before, many card providers may automatically reject your application if you already hold one of their products, or have done so within the last 18 months. You should therefore cancel any card accounts you have open but no longer use.

If you are looking for a card that will offer you financial savings but the least hassle, then it may be worth looking for a cheaper long-term interest saving. You simply take out the card, switch the balance, then put the card to one side and do not use it. This option is much easier if you don’t fancy card hopping to keep your payments low.

If you do end up spending on a balance transfer card, you will do so at a much higher interest rate that cannot be repaid until all the cheap debt has been. Never ever spend on these cards because if you do so you will lose all the benefits of a cheaper rate and may end up with a debt you cannot pay back.

If you want to find cheap credit cards and can afford to pay off the amount outstanding in less than 12 months, or are prepared to continually shift debts between cards, then a 0% offer is the best option for you.

Remember that cards that charge 0% may charge a transfer fee of up to 3 per cent. In this case, you need to balance the 0% deal and the fee depending on your own situation.

Another way of finding a discounted credit card deal is to look at what comes through your letterbox or your email inbox. Sometimes direct mail offers or targeted website emails offer you great deals. Always ensure you are fully aware of their fees before you sign up for anything.

Even if you have a poorer credit rating, there are still ways to cut your credit card costs down and possibly get a cheaper card.

Some comparison sites offer a personalised credit card search. They will assess your creditworthiness, then try to match you up with a credit card that will suit your needs better.

Although they can be very useful, these particular searches don’t take into account all the cards in the marketplace. Always take care to double-check that the product you are being advised to apply for is the right one for you.
There are so many cards out there and, although it is often hard to distinguish between the different types, many card comparison websites also offer easy-to-use guides for the credit card consumer.

Whichever type of card you apply for, there are plenty of cheap credit cards out there, all vying for your business. Credit cards can even make you money if you know how to use them, but be cautious and only use them if you know you can afford to make the necessary repayments.

Cheap credit cards are available if you want to cut your repayments. Using a price comparison site can help you find cheaper credit cards.