Once upon a time, it was easy to get a credit card in the UK. Tempting introductory offers of 0% interest were everywhere and balance transfers were free and easy. Well, although it doesn’t seem like long ago, those days are gone. That being said, there are still a staggering number of cards on offer to the UK consumer; a choice of more than 230 in fact. It’s the acceptance criteria that have changed. There seems to have been an attitude shift too; rather than courting new customers, lenders seem to be focussing on holding on to their dependable customers.
So, those with a solid credit rating and a steady job have their choice of good offers. Of course, you can still find the 0% balance transfer. However, there are now charges applied based on the size of balance you’re moving. If this is something you’re considering, there are a few things that you should bear in mind. The rates involved is the key point to consider but it’s also worth checking your rating with one of the three credit reference agencies; Callcredit, Equifax or Experian. Make sure there are no inaccuracies on your file and be sure to query anything that looks wrong.
Essentially, if your credit rating is poor, you’re going to struggle to be approved for more credit, well, any credit stream being offered at a reasonable rate anyway. You should probably look on this as a good thing, as strange as it sounds. Using credit to pay off debt is a very bad idea. This will be a sign that you have a debt problem and finding a solution to that should be your top priority.
Most balance transfer offers that seem too good to be true usually are too. Some will charge a high rate of interest on purchases. So, you’ll get some very temporary breathing space but build up debt even quicker than before. When the introductory 0% period ends, you should have paid off your debt or transferred it to another card. Often the 0% is balanced by high rates when the term ends.
This is not a solution to the problem of bad debt though. It just put the problem off and that is very seldom a good thing when it comes to your personal finance or any other problem. As soon as you find yourself in a difficult financial situation, seek out independent debt advice. Harrington Brooks are one of the longest established and most trusted financial institutions in the UK and their dedicated team of debt advisors are on hand to help you find a debt solution that best suits your personal circumstances. Visit their website and try the free Harrington Brooks debt wizard for a fast and free answer to your debt problem.
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