sing introductory rate balances from card to card before
credit cards has become a the expiry of the offer period.
popular way for UK This is known as rate surfing.
borrowers to manage credit card Credit card companies don't like
debt. Introductory rate credit it, because it loses them
cards offer borrowers a hundreds of thousands in
preferential interest rate when interest. For consumers, however,
they first sign up for a new rate surfing offers the chance to
card. There are three main ways clear some or all of an
in which this can happen. All of outstanding debt. This is because
the ways offer significant payments to 0% cards reduce the
advantages for credit card debt each month instead of being
borrowers. applied to interest.
0% Balance Transfers Fixed Low Balance Transfer Rate
The one that is most appealing to Another typical introductory
consumers is the 0% balance credit card incentive is a fixed
transfer offer. This offers a nil low interest rate for the
rate of interest on balances lifetime of a balance transfer.
transferred to a particular That means that the lower
credit card. There is usually a interest rate will apply for as
limit to how long this offer long as the debt remains on the
applies, but this can vary from credit card. For example, if the
three to 12 months, so most standard variable interest rate
people will be able to find an is 13.9%, a credit card issuer
offer that suits them. might offer a reduced rate of
4.9%.
The trick to using 0% balance
transfers effectively is to move This is a good option for
borrowers who have a loan or debt cheques.
on which they are paying a higher
interest rate. Transferring to Other Features Of Introductory
this kind of deal can save Rate Credit Cards
consumers hundreds of pounds and
can help them to repay debt more As if low rates were not enough,
quickly. With this kind of deal, many credit card issuers offer
there is little advantage to rate other incentives to new
surfing unless another card customers. These include:
issuer is offering a better
preferential rate. - the ability to contribute to
charity by using a particular
Permanent Low Rate credit card
- discounts off purchases from
A third type of credit card particular manufacturers
incentive offers a low rate on - cash back on purchases
spending on the card. This is - additional insurance on
usually a few percentage points purchases or travel
below the standard variable rate.
This type of offer can be a good Many credit card companies have
option for consumers who spend got wise to rate surfing and now
regularly on their credit cards. apply a one-off charge for
This is because most balance balance transfers. It is worth
transfer offers have higher rates shopping around to get the best
for other types of transactions combination of interest rates and
such as purchases, cash other incentives.
withdrawals and credit card
About the Author:
Joe Kenny writes for the Card Guide, a UK based credit cards site, visit today for introductory balance transfers and start clearing credit card debt today. Visit today: http://www.cardguide.co.uk/
Read more articles by:
Joseph Kenny
Article Source: www.iSnare.com 
