Credit Cards UK: Warning as zero percent credit card offers fall – act now | Personal Finance | Finance
Credit cards, particularly with this kind of deal, are becoming increasingly rare, though, and Britons have been urged to act fast if they wish to secure it. Zero percent interest rate cards can be advantageous arrangements for many people right across the country. A zero percent card will allow people to buy items upfront and then pay off the amount they have spent over a set amount of time.
But the benefit is, no interest will be charged on the amount spent, so once debt is clear, the credit will not have cost the person anything at all.
Financial professionals, including Money Saving Expert Martin Lewis, have advocated for the use of zero percent credit cards, where appropriate, to help Britons manage their money.
Mr Lewis has stated that if approached correctly, interest-free cards can be the cheapest way to borrow.
But recent analysis has revealed these deals are drying up, and people should act now to take advantage of them while they remain.
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She said: “The number of offers available to consumers has dropped since the start of 2020 and the fall echoes that seen during the past recession.
“Typically, credit card providers would rein in lucrative offers during a period of economic uncertainty so that they are not taking on too much risk.
“As experienced during the recession between 2007 and 2009, credit card providers pulled interest-free balance transfer cards.
“Since the start of January, the market has already felt a similar contraction thanks to the impact of the coronavirus pandemic.
“Borrowers searching for a new deal may wish to act quickly, but they should also be wary of balance transfer fees.”
While interest-free credit cards can be advantageous, Britons are advised to take caution through this arrangement.
People are advised to borrow as little as possible, and only use credit cards if they absolutely need to.
Individuals should also borrow only what they can ultimately pay back, as not doing so could leave people in debt.
Consumers should also always check their credit score, as this is likely to affect what deals they can secure.
Help with credit cards is always available through providers, however, some may wish to take advantage of a payment holiday.
This can be formally arranged through a lender until October 31, 2020.
For those who are unsure as to what arrangement will suit them, financial advice should always be taken to provide further insight into an individual’s circumstance.
And, of course, for individuals who are struggling with debt repayments, help is at hand through a number of charities.