This Christmas Spread The Cost With Credit Cards That Will Help You Spend Wisely.
It may very well be the most wonderful time of the year. Though for many households it is the most expensive time of the year what with presents, food, festive travel and all the other expense.
One in five of us know we will use our credit cards to help finance the festive season, however by the time the 25th December arrives more than half of us will have borrowed one way or other help through the festive season.
With British consumers credit cards are the most popular choice of borrowing. We have identified some of the best deals that will help you spread the cost of Christmas, those that will give you the best chance of paying your debt back as soon as possible afterwards.
Saving for Large Christmas Purchases
Terms: You get 18 months at 0 per cent interest on purchases there after the interest rate is 16.9 per cent. On balance transfers you get nine months at 0 per cent interest and the balance transfer fee is 2.9 per cent. Whenever you use the card you get club card points.
Though on balance transfers you have to repay three months earlier than its nearest competitors the club card points are the most generous point’s scheme offered by any UK supermarket.
If you are looking to transfer money then you should look elsewhere as the fee is high for a short interest only free time.
M & S Bank Credit Card
Terms: On purchases you get 15 months at 0 per cent thereafter it goes to 16.9 per cent. On balance transfers you get 12 months 0 per cent interest and the balance transfer fee is 2.9 per cent whenever the card is used you get M & S reward points.
Apart from Tesco bank the longest interest free period you’re going to find on purchases is M & S at 15 months.
Benefits of Credit Cards at Christmas
There are other providers that offer interests free periods for 15 months however if you are a regular M & S shopper then the reward card can be a good bonus.
These cards are some of the best deals on the market today however when you apply for one they may not be offered to you with these deals.
The rates lenders advertise at only have to be given to 51 per cent of successful applicants and that will normally be given to those with the best credit rating. For some who don’t qualify for the best rate they could still be offered a card however with the higher rate of interest, or they may be offered a balance transfer though with a shorter period of time at 0 per cent interest.
If you have applied for several forms of credit in a short period of time then a credit card company could still reject you.
Even though you receive a card with 0% interest you still have to make the minimum payment each month, if you don’t do this you will lose the promotional offer and the interest will be charges on the whole amount.
Of course you should always try and pay back more than the minimum amount as your debt will be cleared sooner and hopefully you can pay it all back before the interest only period ends.
Should I Use a Credit Card At Christmas?
Many people decide to use their credit card to purchase presents during Christmas. It’s a decision grown adults can make, then live with the consequences. For a large number of people, they choose to buy big and pay back over the next 6 months.
If you choose a credit card to pay for Christmas, make sure you’re getting the best deal possible. One credit card isn’t the same as the next. There are benefits and deals available with interest free periods often being the best for people trying to buy now and pay later.
What will you do this festive period to pay for presents/ food and the additional costs? Have you been preparing throughout the year?