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New Credit Card ?

dennisb66
Grafter
Posts: 371
Registered: 01-08-2007

New Credit Card ?

Thinking of changing your credit card,read this link first.
www.everyinvestor.co.uk
cp:blue Long URL converted to a link. mod:end
3 REPLIES
Community Veteran
Posts: 2,919
Thanks: 168
Fixes: 3
Registered: 05-04-2007

Re: New Credit Card ?

Interesting that they have overlooked one of the main scams, which is when making repayments they usually go towards the introductory (or lower) rate first, and not to any other rates until that amount is paid off.
So if you transferred a balance of say £2000 at a low rate, and withdrew £100 cash at probably the normal rate, then you wouldn't be able to reduce amount subject to interest at the higher rate until the entire transferred balance is paid off.
Trick is of course, not to spend on that card which might be subject to a higher rate, or use another card. Can catch you out if you don't realise though, as it did to a friend of mine.
dennisb66
Grafter
Posts: 371
Registered: 01-08-2007

Re: New Credit Card ?

Actually Alex it is mentioned in Stitch Up *5 Cheesy Wink
Community Veteran
Posts: 2,919
Thanks: 168
Fixes: 3
Registered: 05-04-2007

Re: New Credit Card ?

Ah yep so it is .. should have read it through properly Cheesy
Not quite as clear as it could be, I'm sure some companies charge a different rate of interest on say balance transfers than they do new purchases .. but cash out the wall is usually a far higher rate. In any case, you still have the problem with the higher interest rate.
Not too sure about the interest as I don't spend much and pay them off in full every month.
Won't even go into MBNA and the way they tried to introduce an annual fee onto me, I think I posted a long version of that in the old forums somewhere ..