- 18
- Jun
Several balance transfer deals have hit the market in an attempt to lure consumers who are struggling with the increased interest rates. There are now over ten cards on the market that are offering over a year’s worth of free interest on balance transfer deals. The Royal Bank of Scotland will launch a new card with a year’s free credit on switched balances, and HSBC will launch a brand new 12-month offer.
The launch of these interest-free balance transfer deals come at a time when interest rates are rising and making it harder for consumers to repay debts, especially for homeowners who are feeling the pressure of the increased interest rates. The credit card offer is a way for lenders to gain customers, especially at a time when the offer is most appealing.
However, for those consumers who are looking into a balance transfer card, it is advised that they check the Balance Transfer Fee, as it could be more beneficial for them to choose a lower balance transfer offer period if it comes with a smaller fee.
Almost all credit cards charge a balance transfer free which is typically two percent, but it can be as much as five percent on some cards. Consumers are advised that when searching for a balance transfer credit card that they carefully read over the fine print and make sure that they understand all the charges that are involved with the transfer. They should also make themselves aware of the card issuers interest rate once the period expires to avoid any surprises.
Consumers who are looking to consolidate debt or who are moving a high balance which they can only pay off incrementally would do better to consider a cheap loan. Any consumer can save themselves a good deal of money by looking over the figures carefully and seeing what the longer term picture is, rather than the short term gain.
