Credit Card Workings

Consumers are not always aware of how the credit card companies work. There are many things to consider when you apply for a credit card. There are several consumers that are being taken advantage of by the card providers in that they are paying their lowest interest rate debts off first. For example if you obtained a credit card for the zero percent balance introductory rate, but used the card for purchases you are actually paying off the zero percent interest balance over the purchases that have an interest rate. This means that you end up with a bigger debt in the end according to moneysupermarket.com.

There are eight major credit card providers that have been carrying out this practice. Nationwide seems to be one of the exceptions at the moment. The practice is imposing high fees on the credit card customers in that they are paying more in interest and fees than the consumers are aware of.

The head of the credit card department at moneysupermarket.com, Steve Willey has decided to give an example regarding the extra fees and higher rates the consumers are paying. It is close to the above example in that you are not paying off the balances that have an interest rate or those that have the higher interest rate. Instead consumers are paying the no interest rate or those that have special interest rate balances first.

It is important to stress just what these examples are telling consumers. The small print must be read and understood by the consumer in order to get the best benefits from the credit cards. If you are about to apply for a credit card you should read all of the information available and decide on the best credit card rather than taking the first card you see. The information may save you in fees and interest.

Back To Financial News February 2008

Inheritance Tax
Identity Theft Revealed
Understanding Lifetime Mortgages
Home Reversion Plans Explored
Government News Network Review
Finding Insurance With CompareTheMarket.com
Credit Card Workings
Comparing Credit Cards by The Office Of Fair Trading
Cap Payday Loans at 36% In The States
Understanding Buy to Let
Say Hello to Lost Money
Repossessions in UK
Rate Cut Damages Pound
Lower Interest Rate Needed?
Housing Prices Cease to Rise
Buy To Let Mortgages
A Poorer Credit Card Score Deal
Balance Transfer Explained
Finding a Balance Transfer Deal
Finding the Best Credit Cards
How to Use a Balance Transfer Card
Questions on Balance Transfers
The Best Deal
Top 0% Deals
What Are National Savings and Investments