Credit cards are a lucrative financial instrument. With a credit card, you have the convenience to buy now and pay later, even over a period of time, as long as you do pay up. Without taking a loan, or even as much as visit a bank, with a credit card, you can freely exercise your financial freedom.
As with all great things, credit cards have their downsides as well. Credit cards must be used judiciously, and the payment you make using a credit card must always be within your repayment means.
Credit card debt is a significant cause of insolvency in cities the world over, and a considerable value of this loan must be avoided. Not being able to repay a credit card loans also reduces your credit rating. Once a financial corporation has reduced your credit rating as per their assessment, it can be tough to bring it back up.
Several credit cards now offer schemes that keep you well clear of the debt cycle. Even with repayment, the cycle lengths and interest rates are low enough that you can pay off your credit card loan well in time.
Let us look at some options in this category.
Halifax Low Fee 0% Balance Transfer Credit Card
The Halifax Low Fee 0% balance transfer credit card has an interest-free period for all types of transactions. The card offers 0% interest for up to 23 months on balance transfer and up to 9 months for purchases.
After these periods, the interest rate rises to 19.95% in both cases. The 23-month interest-free period on Halifax credit cards allows you to repay other credit card loans with the Halifax card.
Halifax charges a 1.5% transfer fee on balance transfers. Halifax credit cards are very secure, and you can check your due balance online or through your mobile on the go.
MBNA Low Fee 0% Balance Transfer Card
The MBNA Low Fee 0% Balance Transfer card is meant specifically to pay off your due loans from credit cards or other financial instruments. The interest-free period for the MBNA Balance Transfer card is 25 months.
The interest rate for purchases, as well as for balance transfers after the interest-free period, is 20.93%. There is also a 1% fee on balance transfers that rises to 5% after 25 months. The MBNA credit card is compatible with contactless payments, and its information is accessible through a mobile app.
Tesco Bank 15 Month No Interest All Round Credit Card
Tesco Bank offers the All Round range of credit cards, in which you get an interest free period between 9 and 15 months, depending on your circumstances and requirement. For balance transfers, the bank charges a 1.99% fee, and for money transfers, the fee is 3.99%.
After the interest-free period and for purchases, the interest rate is 20.9%. The All Round Credit Card is also a Tesco Clubcard, using which you can collect points on each of your transactions, and redeem these points for discounts later.
Barclays Balance Transfer Platinum Card
The Balance Transfer Platinum range of credit cards by Barclays Bank allows you an interest-free period of 15, 18, or 21 months, depending on the card you opt and are eligible for. The interest rate on purchases with these cards is also 0% for 6 months.
The transfer fee with the Platinum Card is 0.9%. After the interest-free period, the interest rate rises to 21.9% for all types of transactions. These cards are only available for new customers of Barclays Bank, who do not already have a Barclays Bank card.
Sainsbury’s Bank Low Fee Balance Transfer Credit Card
The Sainsbury’s Bank Low Fee Balance Transfer Credit Card can be extremely effective in keeping you out of the debt cycle by enabling you to pay off your loans on time. The card offers an interest-free period of 18 months on transfers, with a 0% or 0.5% transfer fee for the first three months.
For purchases, the interest is 0% for the first three months as well. After the interest-free periods, the interest rises to 21.95%. Sainsbury’s Bank charges no annual fee for these cards.
The cards are also widely integrable and compatible with Google Pay and other similar providers. You are also eligible for up to 7500 bonus Nectar points on purchases in the first two months.
Virgin Money All Round Credit Cards
The Virgin Money, All Round Range of credit cards, offer low introductory interest rates not just on balance transfer but also on purchases. This allows you to pay off your outstanding loans while you conduct your daily purchase activity using a credit card. The interest-free period for both balance transfers and purchases on the credit card is 20 months.
The bank charges a transfer fee of 2.9% but does not charge any annual fee. After the interest-free period, the rate rises to 20.9%. With the All Round credit card, you also get rich discounts on the Virgin family of products.
Virgin Money Balance Transfer Credit Cards
The Virgin Money Balance Transfer credit cards offer some of the longest interest-free periods for cards of the type. These cards have an introductory interest-free period of 24 months or 28 months, depending on your eligibility. The transfer fee is 2.7% for the 28-month card and 1.25% for the 24-month card.
You also pay 0% interest on purchases for the first three months. After these periods, the interest rate rises to 21.9%. These cards are compatible with contactless payments up to GBP 45 and can be used at all MasterCard locations around the world.
Credit cards are an awesome financial instrument. But with a bad credit score, many banks will not issue you a credit card. If you want a credit card but have bad credit, you might wish to take out a small loan to improve your credit condition and make yourself eligible for a potential card down the line.
In such circumstances, a small loan calculator can be of great aid to you in your daily life. Exercise your financial freedom, but always make sure to be judicious about it. Whichever of these credit cards you choose, use it wisely and stay clear of the debt cycle.