Do This If You Can’t Get A 0% Card

We normally associate credit cards with the convenience of instant purchases and high interest charges.

The obvious way to dump credit card debt is to get one of the 0% cards that are on offer.

It may seem weird that credit card companies would even offer 0% cards but you must realise the 0% only lasts for an introductory period, after which the usual rates take effect. You also must take to heart the fact that new purchases will be charged at the usual double digit rates – albeit with an interest-free period – while cash transactions will be charged the usual rates from the moment the transaction is carried out.

Save On Interest

On the other hand, if you control yourself and your spending, you’ll find that as you pay down the debt at 0%, you’ll save a lot on that reduced interest rate and – this is very important – if you apply those savings to the debt, it will disappear much faster.

So how do you get a 0% card because the card companies don’t just hand them out willy-nilly?

You first need a good credit history and rating. You can find out your rating by going to a credit bureau or a financial advisor. They’ll be able to tell you why you may not qualify for 0% cards.

You may have made several balance transfers before, which tells the credit rating agency you’ve been in debt trouble before and you haven’t changed your spending habits enough to make you trustworthy again.

A Complex History

Bear in mind that it’s not just your use of credit cards that contributes towards your credit rating. It can also involve your relationship with your bank, whether you’re regular with your payments to the power and gas companies, your mobile phone provider or your mortgage repayments.

If you want to get a 0% card, pay very close attention to the details of your financial history.

1. It may seem obvious, but pay off all your debts, even if it causes temporary pain. Remember, you’re building for the future.
2. Shut down accounts you’re no longer using. Even though you have no use for them, they can make your credit to income ratio look out of balance.
3. If you’re applying for a 0% card for the first time, work really hard to persuade the issuer of your good intentions. If the issuer sees you have no previous borrowing activity, they may be less eager to trust you. Weird, yes, but it does happen.
4. Dump former associates. If a person still associated with your accounts, like an ex-partner, is having financial woes, this could affect you adversely. Remove them from your financial associations.

Related posts:

1. Introducing Visa Credit Cards
2. What You Need To Know When Choosing A Credit Card
3. Reasons To Do A St George Credit Card Balance Transfer

Posted on Thursday, January 6th, 2011 at 9:46 am