Related Credit Card Article

"Don’t lose your interest free facility on your credit card"

By Reno | August 27th, 2010 | Balance Transfers, Featured

Many people these days have interest free credit cards, and this is because these cards can offer great value for money in terms of saving consumers money on the amount that they pay on their borrowing. There are different types of interest free credit cards, including interest free balance transfer credit cards and interest free purchase credit cards. There are also low interest life of balance transfer credit cards, which are designed for those that want to transfer balances from higher interest cards but need more time to clear the balance than many of the interest free credit cards offer.

However, whilst these interest free credit cards can offer many benefits to those that run their accounts responsibly by making repayments on time and for at least the amount requested the punishment can be harsh for those that fail to do this. Many people miss repayments or make late repayments on their credit card debts, and although this may have been an inadvertent oversight the banks have started to come down hard on what they class as defaulters.

The thing to bear in mind if you have one of these interest free credit cards is that they are based on contract, and whilst part of the term is for the provider to give the consumer interest free credit as per the terms the borrower also has contractual responsibility, and this is to ensure that they make repayments on time and for at least the minimum repayment as requested by the lender.

Anyone that fails to do this and makes a late payment or missed payment could therefore be classed as breaking the contract, and this gives the credit card company the right to withdraw the interest free facility. If this is done the borrower may be put into the standard rate of interest or even a higher one that this in some cases, so consumers that do miss repayments could really end up paying through the nose.

Anyone that has an interest free credit card therefore needs to ensure that they take measures to make sure that repayments are made on time. This could mean setting up a standing order or a direct debit for a set amount that covers at least the minimum repayment. This will make it easier to ensure that all repayments are met on time, and means that the cardholder will not lose the important interest free benefits of the card.

Tags: free, Credit Cards, interest, repayment, debt

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