Credit Card Transfer and Reward Schemes

I was recently talking to Martin Greenwood, a business and finance expert from Zibb who told me most banks and card companies offer attractive deals for credit card transfer as well as very tempting reward schemes. Most will accept balance transfers of a limited amount at 0% interest for an initial period of between six months and two years; after which interest is applicable as normal, or possibly a little higher. If you transfer your balance from one card to another and then pay off that balance within the initial time period, you are able to pay it back interest-free and this is an excellent solution for people who are finding themselves struggling to repay credit card bills, as often the minimum required monthly payment is the same amount or less than the monthly accrued interest.

After the transferred balance is cleared, the cardholder can go on to participate in some of the other credit card rewards schemes or points systems available to them; for instance a card may work on a points system whereby points are accumulated with every card purchase and then these points are redeemable for air miles, gifts, vouchers, travel discounts and so on. Other rewards schemes may offer immediate discount on certain purchases or services paid for on the card, or they may give cash back on everything paid with the card; in varying percentages according to the service or product you are purchasing.

Banks and credit card companies are constantly offering different credit card reward schemes or attractive deals on credit card transfer, as an incentive in a very competitive market, as there are so many credit cards to choose from. Many people today are finding themselves in credit card debt which they are having trouble in clearing, with interest rates so high that they can only afford the minimum payment each month. This is where the balance transfer deal is so helpful, as it allows you to actually decrease the amount owed with these monthly payments and it is not immediately piling back on again in interest. Generally, you can find a card which will allow you to transfer your balance not only interest-free, but without any handling fee or annual card fee; at least for the first year. Cutting down the balance owed and cutting out the accruing interest will make it much easier for you to clear your debt and get back on track.

Entering into a credit card rewards scheme provides you with a way to earn gifts and discounts with every pound that you spend on your card, whether in payment for services or in purchases, and some of these rewards schemes will offer differing numbers of points on certain types of purchase. This could be on petrol for your vehicle or for travel expenses, or even on grocery shopping.

It is important to look carefully at all the different credit cards on offer before choosing your card; do not be dazzled by the attractive advantages of credit card transfer or rewards schemes without also looking very carefully at the annual fees and interest rates, as you could be signing up for a lot more expense than you bargain for.