Credit card rate tarts in a jam, debt management may be needed
Published: 25 June 2009 By MoneyhighStreet Staff Leave a Comment
Many seek to get 0% balance transfer credit cards but so called ‘rate tarts’ are getting in a jam as many applications are rejected – is it time for some debt management?
0% balance transfer credit cards are popular but there aren’t as many available now.
That said you can get a Virgin credit card which currently offers a 16 month 0% balance transfer deal – it’s the only one that’s available at the moment so might be wise to apply quickly if this is what you need.
Louise Bond, personal finance expert at uSwitch.com, said ‘We can’t ignore the fact that the country is in economic turmoil – a situation which has been catalysed by bad consumer credit.
The knock on effect for credit card customers is that those with a less than perfect credit history could find themselves being turned down for the next best 0% deal, forcing them to pay interest.
This is a huge problem for switchers as these people have accumulated debt based on the fact they do not have to pay interest.’
Credit card companies use your credit score to determine whether or not they will give you a credit card.
Each time you make an application it appears on your credit report. If you apply for too many cards and these are rejected, over the longer term it can have a negative impact on your credit score.
It might be wise to check your credit report before making credit applications so you can see for yourself what the position is and identify any opportunities to improve your credit score.
You may find it helpful to look at our MoneyHighStreet.com article on ‘Your credit rating – how to improve it‘.
If you cannot get accepted for a new 0% balance transfer credit card and your debt is getting out of control, you may want to consider other action, for example look at taking out an unsecured loan or seeking debt management advice.
Debts do not usually right themselves without action being taken and if left unchecked can lead to serious consequences.
If you have debt issues, the sooner you take action the better.