Credit Card News Round Up - 7th July 2008

Dedicated credit card news & the latest updates from across the UK

By Rachel Preece Staff Writer 7 July 2008 Best Credit Cards for Summer Sales » Capital One Platinum - 0% purchases until 1st October 2009 » Barclaycard Platinum - 0% purchases for 10 months » Halifax 'All in One' - 0% purchases for 10 months Related Guides & News Q. Why are there so few 0% balance transfer and purchase credit cards? Equal length 0% balance transfer and purchase credit card deals - that are suitable to both transfer to and spend on have become the rarity - and the main reason simply comes down to credit card company profiteering. Q. How long is the longest 0% purchase deal available? 0% purchase periods range from 3 months right up to a whole year, obviously it’s best to choose the longest 0% period available so you have more time to repay your purchases without incurring any interest charges. Ditch your store card! Get a retail reward credit card If you do enjoy shopping and you want to enjoy the convenience of a card without the hefty interest rates charged on store cards, then you could benefit from a retail reward credit card. 30. 6. 2008: Avoid making minimum repayments on your credit card Anyone who is just paying back the minimum are being urged to consider paying back as much as they can comfortably afford too, as this can really help to reduce the total amount of interest charged and the length of time it takes to pay it all back. 12. 6. 2008: With the cost of credit card use rising - are you carrying the best plastic for you? As more and more people are turning to credit borrowing to either spread the cost of new purchases or spread current balance repayments, it is important to highlight the need to be using the right credit card.

WITH the recent launch of Halifax's All in One credit card, and the Capital One re-launch, it's a busy time for great credit card deals. Make the most of your summer spending by avoiding high-interest store cards and looking for the best credit card deal for you.

Halifax launches 'All in One' credit card

FOLLOWING the lead of several other lenders, Halifax has recently launched a new 'all in one' credit card, which offers a range of benefits to new cardholders.

Halifax promises a ten month interest-free period on purchases and balance transfers, making the Halifax All in One credit card attractive to many. Halifax themselves have emphasised the rarity of 0% interest on purchase deals in the current market, which will no doubt add to its appeal.

Although, Halifax has just been pipped to the post by Capital One – with their re-launch of the Capital One Platinum credit card that now offers a combined 0% balance transfer and purchase offer until 1st October 2009. See the latest updates in 0% balance transfer and purchase credit card offers in our credit card comparison table.

Sales, Saturdays and Sunshine lure out our plastic

A recent study of UK consumers has suggested that we Brits are living for the weekend, spending a phenomenal amount on our credit cards on Saturdays.

Research recently conducted by the Cooperative Bank has suggested that people living in the UK spend an average of £549,000 on a Saturday over their lifetime.

Some have suggested that this splurging at weekends is because, as a nation, we work the longest hours in Europe. Not getting the chance to browse the shops during the week, many people see the weekend as a chance to relax – and this inevitably means splashing the cash.

Sainsbury’s too, have recently conducted some research into summer spending, and it appears as though the credit crunch is not stopping our spending. While many consumers look set to tighten their belts due to the current economic situation, Brits will still spend £7.89 billion in the summer sales this year, only slightly down on the amount spent last year.

According to Sainsbury's, 25.78 million people predict they'll spend an average of £305.90 each in the summer sales, and 3% believe they'll spend more than £800.

Sainsbury's have also discovered that 42% of summer spending will go on credit cards, so before you're overcome by too much sunny weather, tempting sales or simple Saturday shopping trips, check out our best buys on 0% purchase credit cards in our easy to use credit card comparison table.

Tories to tackle 'debt-addicted' Britain with crack down on excessive store card interest rates.

GEORGE Osborne, the Shadow Chancellor, has this month stated that Brits are "addicted to debt", and has unveiled a plan which would ensure that stores could no longer offer credit cards with excessive interest rates.

Osborne believes that the Office of Fair Trading should have powers to penalise retailers over store cards. With 1/3 of stores charging APRs of over 25%, and some even charging 29.9% or more, George Osborne feels it’s time to clamp down on reckless borrowing and lending.

Osborne has also suggested a 7 day cooling-off period for shoppers with store cards, which would help to promote sensible buying, allowing people to think about the debts they're incurring.

According to Conservative calculations, people in the UK owe over £2.2 billion on store cards. Despite the credit crunch, people continue to splurge using store cards – the number of store card accounts has risen from 7m five years ago, to 13.4m today.

Osborne also wants to raise £50 million to introduce a free national financial education programme, to encourage responsible borrowing and responsible lending.

To see just how ludicrously expensive store card interest rates are, compare credit cards by low interest rates - currently you can go as low as 8.5%! Phew!

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