Credit Cards for Damaged CreditDamaged credit cards
" The Greater Leniency Capital One's Balancecard provides 0% interest on credit balances until June 2013 for those with an "average" to "good" credit record - "even if you have had a CCJ or default in the past," the ad says. Check this against the credit funds offered by other large credit cards like Barclaycard and NatWest, who favour "good" over "excellent" creditworthiness.
Specifically, the eligibility conditions for the map are also relatively favourable. Acceptance eligibility requires that a borrower has not had a CCJ or default or filed for insolvency in the last 12 month - but credit questions older than one year will not be disqualified. Check this against MBNA's credit cards requirement, which discourages candidates who have had a CCJ in the last five years.
The Lloyds TSB will require Claimants to be free of any type of CCJ for their credit transfers. Potential pitfallsBefore considering that Capital One's offering is the right response to your credit problems, you should look at the small imprint on the credit cards before committing any funds to them. Firstly, the credit has a 3% credit charge, which means that a credit of £1,000 would take 30 to be transferred.
This is a strong charge in comparison to other credit transfers on the merchant side. Equilibrium transfers are between 1.5% and 3.5% -- and charges close to 3% are usually associated with benefits, such as long 0% equilibrium transfers of at least 20 month. Capitals One's map provides 0% annual percentage rate of charge for only six month.
Check it out with NatWest and Barclaycard who offer 12-month cards with no interest for 1% and 0.9% respectively. Secondly, the purchasing ratio and the go-to ratio after the end of the carryover accounting horizon are relatively high at 34.9%. Due to the low remittance charges and the high go-to interest rates, you must be disciplined when taking this out.
Ensure that you can withdraw the funds within six month and do not use them on the credit cards. "There are not only transfers, the amount of time you are billed 0% interest on is relatively short," says Farrell. "Humans should only consider requesting one of these cards if they have a blueprint as to how they want to make the most of the 0% timeframe and what they will do when it ends.
" When you can do that, the map can be a wise choice for those with slightly damaged credit history who want to legacy high-yield debts. The Three Latest Balance Transfers, debt consolidations stories: There are many 0% Equity Transfers on the open markets, but in some cases a Equity Transfers may be more intelligent....
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