Money

Tesco launches fee-free 12-month 0% balance transfer card

lovemoney.com — 2013-06-10T10:00:00+00:00

Tesco has launched a balance transfer credit card with no interest for a year and no transfer fee to pay.

Tesco has launched a new Clubcard Credit Card, offering 12 months of 0% interest on balance transfers, but without charging a transfer fee.
Because the new card doesn't charge interest on balance transfers it's worth a look if you need a bit of help paying off existing credit card debt. And it's completely unique - no other card offering an interest-free period doesn't charge a transfer fee!

What's more, you won't pay interest on purchases for a year either!

There is also the added bonus for Tesco shoppers of collecting Clubcard points when using it. When shopping in Tesco or on Tesco petrol you'll receive five points for every £4 you spend and you'll get one point for every £4 spent elsewhere.

How does it compare?
If you don't have a huge amount of existing credit card debt that you need help to clear then a card like the new Tesco Clubcard Credit Card gives you a decent amount of time to pay it off, without having to pay a transfer fee.

You can get longer 0% period though, for only a small fee, as the table below details

Balance transfer card	Balance transfer fee	0% period on balance transfers	0% period on new purchases	Fee paid on £2,000 balance transfer
Halifax All In One Online MasterCard	1.00%	15 months	15 months	£20.00
Lloyds TSB Online Platinum	1.00%	15 months	3 months	£20.00
NatWest Platinum Low Balance Transfer Fee Credit Card	1.00%	13 months	6 months	£20.00
Royal Bank of Scotland Platinum Low Balance Transfer Fee Credit Card	1.00%	13 months	6 months	£20.00
Barclaycard Platinum Low Fee Balance Transfer Credit Card	1.28% (for June)	16 months	3 months	£25.60

Cards with a low fee typically have a much smaller 0% period.

But if you need a lot longer than even the 16 months offered by the Barclaycard above, there are other options around. The market-leader, for example, from Barclaycard has a 27-month 0% period, but a fee of 2.98%.

Our comparison tables show the full picture but here I've listed the top five cards with the longest 0% periods.

Card	0% period	Balance transfer fee	Fee paid on £2,000 transfer	Representative APR after 0% period ends
Barclaycard 27-Month Platinum Visa	27 months	2.98% (for June)	£59.60	18.9%
NatWest Platinum MasterCard	26 months	2.65%	£53	18.9%
RBS Platinum MasterCard	26 months	2.65%	£53	18.9%
Virgin Money MasterCard	26 months	2.99%	£59.80	17.9%
Barclaycard 25-Month Platinum Visa	25 months	2.04% (for June)	£40.80	18.9%

Make money from your spending with a cashback credit card

How to use a balance transfer card
When you take out one of these cards, the main aim should be to clear the debt in the 0% period. If you don't then you'll have to start paying interest when the 0% period ends. At this point it may be possible to transfer the debt onto a new card but there is no guarantee you'll be accepted.

These cards have a higher standard interest rate than most credit cards and therefore interest payments can negate any savings you've made in the 0% period.

Missing a payment is also dangerous as it can cut the 0% period short, result in a fine or even leave a permanent mark on your credit score.

Save money on your travels: get a credit card with no foreign usage fees

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£83 wasted on 'one hit wonders'

Press Association — 2013-06-06T07:30:00+00:00

Filed under: Credit Cards

Britons will blow around £83 on clothing this summer which will hardly be worn before it is thrown out, research has found.

Men are worse culprits than women, spending £100 on average on useless outfits while women waste £67 typically on badly-fitting or poor quality garments that will not make it to next summer, TK Maxx found.

The most common items destined for the chuck-out pile include shorts, swimwear, T-shirts and dresses.

Londoners are expected to waste the most on "one hit wonders", spending £99 on average, compared with £66 in East Anglia.

Around 2,000 people took part in the research last month across the UK.

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Tennis: the cheapest ways to get Wimbledon tickets

lovemoney.com — 2013-06-06T06:30:00+00:00

Filed under: Credit Cards

Wimbledon is just a matter of weeks away. We look at the cheapest ways to get to see the elite of tennis up close.

SW19 becomes one of the most desirable postcodes on the planet for two weeks every summer when it plays host to the Wimbledon Championships. But if you're not lucky enough to get an invitation to the Royal Box here's how you can still see those big matches on a budget.
Centre Court seats
Tickets are available on the day for Centre Court and No.1 and No.2 courts. But with the majority of tickets allocated in the public ballot, numbers are limited. For Centre Court 500 tickets are available each day at the turnstiles, except for the final four days which are all pre-sold.

However, there are 500 tickets available each day for both No.1 Court and No.2 Court each day (or for as many days as there's a full programme of matches for the latter).

For the cheapest Centre Court tickets, go along on the first two days when you'll pay £45 a time with prices up to £74 by the end of the first week. Tickets are sold at the turnstiles but it's one big queue for both ground passes and seats so if you want to stand a chance of getting tickets on the first day join the queue as it opens.

And make sure you pop to the cash machine before you joining the queue, (you can find banks near Southfields tube station, which is where you get off for Wimbledon) as ticket payment is strictly cash only.

Go online
Several hundred tickets are sold off on the day for play on Centre Court and No.3 court through the Ticketmaster website. Sign up for the Wimbledon email newsletter for the latest information, before tickets go on sale at 9am each day. Prices start from £37 for No.3 and £45 for Centre Court.

Get a ground ticket
This is brilliant value for money as it gets you through the gates where you then can take your pick of matches on the outside courts with standing room and unreserved seating across courts 3 - 19.

Ground tickets are more expensive during the first week, at £20, but this is when you've more chance of seeing the big name players on the outside courts - with so many matches to get through, not everyone can play on the main show courts.

There's several thousand on sale every day, and if you go after 5pm prices are cheaper still at £14 during the first week.

The cheapest ticket into Wimbledon
For the ultimate cheapest ticket into the Wimbledon grounds, turn up on the last Sunday after 5pm when you can get into the grounds for just £5.
While you may only be in time to catch the end of the mens' final on the big TV screen at Aorangi Terrace (first known as Henman Hill and more recently Murray Mount), there should still be match finals on the outside courts, depending on the schedule, which may include the veterans' finals and boys' and girls' doubles finals.

Snap up early returns
And with a ground ticket you're in with a chance of getting a Centre Court seat for £10 if you head for the ticket resale kiosk.

Any tickets handed in are sold off from 3pm onwards and profits donated to charity. If you're thinking it's unlikely true tennis fans would give up their seats so early on in the day, remember there's lots of people go to Wimbledon on corporate trips.

I've seen people leave mid afternoon, well before the day's play is done.

Don't buy from touts
This should go without saying. However much you want a ticket, don't do it.

You'll get ripped off as you'll pay over the odds and they may not be genuine or accepted on the turnstiles.

Be first in the queue next year
If you don't make it this year, be first in the queue for next year. Most of the showcourt tickets are allocated via the public ballot and anyone can apply by writing to the All England Lawn Tennis Club, PO Box 98, London SW19 5AE

Ask for a ballot application form and enclose a stamped addressed envelope. Forms must be returned by the end of December and you'll get to hear around February time if you're successful.

Join a tennis club
You can double your chances of getting tickets with a second ballot if you join the Lawn Tennis Association as some Wimbledon tickets are allocated for tennis club members.

However membership costs £25 a year, so if you don't play for a club and are only joining on the off chance of securing tickets this could prove an expensive option.

Apply for a job at Wimbledon
While it may mean serving the strawberries, rather than eating them, you will at least get inside the grounds for free.

FMC is the official caterer for the Championships and employs around 1,800 people to cover Wimbledon. For more check out the FMC website.

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Barclaycard cuts credit card fees in June sale

lovemoney.com — 2013-06-05T12:30:00+00:00

Filed under: Credit Cards

There are now even more offers in the balance transfer market with Barclaycard's latest sale.

Barclaycard has knocked 15% off the balance transfer fee on several of its credit cards, it confirmed today.
The price cut is part of its June sale and the card provider has also made several other changes including increasing the 0% purchase period on the Initial credit card to five months, from three.
The discounts last throughout the month of June and clearly cement the provider's place at the top of the credit card tables.

June sale
Several cards in the Barclaycard range are included in the June sale.

The market-leader, which offers 0% interest for 27 months, now has a reduced fee of 2.98% which means you would pay £59.60 to move over a debt of £2,000.

Next in line is the 25-month card which now has a fee of 2.04%, so £40.80 to transfer £2,000. The yearly fee for the Cashback High 5 card has also been waived for those who sign up this month.
Below you can see exactly what's changed across the range in the June sale.

Card	Transfer fee for June	Fee on a transfer of £2,000
Platinum 27-Month 0% Balance Transfer Card	2.98%	£59.60
Platinum 25-Month 0% Balance Transfer Card	2.04%	£40.80
Platinum 18-Month 0% Balance Transfer Card	2.47%	£49.40
Platinum 16-Month 0% Balance Transfer Card	1.6%	£32
Platinum Purchase 14/14 Card	2.47%	£49.40
Barclaycard Platinum Low Fee Balance Transfer Credit Card	1.28%	£25.60
Freedom Rewards Balance Transfer Credit Card	2.47%	£49.40

The balance transfer market
In the past month credit card providers have been pulling out all the stops to make sure their balance transfer cards are beating the competition.

Barclaycard has successfully remained on top consistently and now has the longest ever deal at 27 months. After today's reductions it also offers some of the cheapest cards which have a lower 0% period.

But the best cards on offer from Barclaycard won't be available to everyone. They require a squeaky clean credit score and you can't transfer over an existing Barclaycard balance.

The best alternatives
If you're not eligible for one of the Barclaycard cards, there are other options around with very similar offers.

NatWest and RBS, for example, have cards with 0% balance transfer periods for 26 months and a fee of 2.65%.

Virgin Money also has a 26-month card with a slightly higher fee of 2.99% and the offering from Halifax is 25 months with a fee of 2.5%.

Our comparison tables give a full view, but you can also find out more in our article - The best non-Barclaycard balance transfer credit cards.

How to pick the right credit card
Balance transfer cards won't suit everyone and they only work if you're paying off a credit card debt with a high interest rate and looking for a breather from the payments. Depending on how much debt you have, you can either go for a card with a long 0% period, or one with a low fee.

Unfortunately those with a low fee, such as the Platinum Balance Transfer Card from Lloyds which has a 1% fee, also have much lower 0% period and this one is only 15 months.

When you take out one of these cards, the main aim should be to clear the debt in the 0% period. Failure to do this will mean you'll have to start paying interest when the 0% period ends. As these cards generally have a higher interest rate than most credit cards, these payments can negate any savings you've made in the 0% period.

Missing payments is also dangerous as this can cut the 0% period short, result in a fine or even leave a permanent mark on your credit score.

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Get the American Express Preferred Rewards Gold Card fee free

lovemoney.com — 2013-06-05T12:00:00+00:00

Filed under: Credit Cards

Save £125 on the annual fee for the American Express Preferred Rewards Gold Card and get access to some great rewards.

American Express is currently waiving the £125 annual fee on its Preferred Rewards Gold Card.

So what do you get with this charge card?
What you get
Well, for a start you can get 20,000 Membership Reward points as a Welcome Bonus when you spend £2,000 in the first three months. That's enough points to get two return flights to European destinations such as Paris or Amsterdam with British Airways.

This bonus works out as ten points for every pound spent in the introductory period. You earn one point per £1 spent once it's over.

You'll also get two complimentary VIP airport lounge passes every year, allowing you to travel in style.

But points can also convert into hotel stays, shopping vouchers, luxury items like an iPad and even fun experiences.

You earn double points on travel spending (like plane and rail fares) and nearly everything you spend abroad. Plus you get double points on petrol and major supermarket purchases for 12 months.

In addition, you get a whole load of card protection, preferential treatment at restaurants and gigs plus travel inconvenience insurance for things like flight cancellations when tickets are bought on the card.

To apply you need to have an income of at least £20,000 and have a clear credit history. Also, to be eligible for the Welcome Bonus of 20,000 points, you must not have held any other American Express Charge Card in the last six months.

Be cautious
This seems like a great deal but make sure you don't get caught out. While Amex is currently waiving the £125 annual membership fee, this is only for one year. If you keep the card after this period the fee will be charged.

You should also note that as this is a charge card, not a credit card, you are required to pay off your balance in full each month. So although there is no spending limit and no interest charges, you need to make sure you can afford what you buy every month.

Is Amex only for big spenders?
If you have a lot of money to burn on a monthly basis, this card can be hugely rewarding. 100,000 points can get you a five-night stay at a Starwood hotel resort. But what about those who are on a tight budget?

The great thing is you don't need to alter your spending habits or be super-rich to benefit. Just putting the food shop and your travel costs on the card could reap great rewards.

I spend £400 a month on food and £112 a month on travel. By using the charge card instead of cash, in the first three months I could earn 15,360 points. After the Welcome Bonus offer ends I will be able to rack up another 9,216 points (the points are doubled because of the type of spending).

This would leave me with over 20,000 points, which I could use on one return flight to Istanbul (I just pay the taxes and fees), a £100 gift card for a spa or Bose headphones.

Even if you are happier spending less and racking up just 5,000 points, you can still get a £25 gift card for shops like Amazon, £25 voucher for a range of restaurants or one night's stay in a top hotel.
An Amex card isn't just for the super-rich, especially now its fee free. Just applying your normal spending habits can give you access to luxury rewards too.

Alternatives
Here are a few other cards that reward you for spending.

Santander 123 Cashback Credit Card
If cashback is more up your street try the 123 card. Earn 1% at supermarkets, 2% at Department Stores and 3% on travel costs. Cashback is credited monthly but you will need to pay an annual fee unless you are a 123 Current Account holder. For more on cashback rewards take a look at The best cashback credit cards.

AA Members Rewards Visa
Get one point for every £1 spent or two for every £1 spent on fuel, motoring or AA products. Your points can get you shopping vouchers and money off motoring products. The card also offers 0% on purchases for ten months and 0% on balance transfers for 12 months.

Tesco Clubcard Credit Card for purchases
Earn one Clubcard point for every £4 spent. The card doubles as a standard Clubcard so you'll be able to collect points on your Tesco purchases too. That means you will get five points for every £4 you spend at Tesco and on Tesco fuel with the credit card. Points can be converted into vouchers and Avios airline points. The card also features 0% on purchases for 16 months. Read The best 0% purchase credit cards for a round-up.

John Lewis Waitrose Partnership Card
Gives you one point for every pound spent at John Lewis and Waitrose. Elsewhere you can earn one point for every £2 you spend. Each set of 500 points gets you a £5 John Lewis/Waitrose vouchers sent out three times a year.

For more read: The best reward credit cards.

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12 signs you're being scammed

lovemoney.com — 2013-05-31T09:00:00+00:00

Filed under: Credit Cards

I'm used to rip-off firms phoning me, offering dodgy investments. But this week, someone called to speak to my wife.

She was at work so I asked for details. He said she was an active investor and would be interested in what he could offer.Calling my wife an active investor is somewhere between foolish flattery and fantastic falsehood. She has many interests but finance is not top of the list. Her limit is the occasional look at Nationwide's interest rates.

The guy promised to call back. So far, he has not bothered. But I did manage to wheedle some details out of him, and take a look at his website.

This phone call lasted one minute. Now the probability is you won't be called by this firm. However, its method of entrapping the unaware is the same as every other phone-based investment fraud, so it does not matter which one calls.

Taken from this, here are my top 12 killer signs of a scam.

A call out of the blue
You are phoned out of the blue by an organisation you have never heard of. They will pretend to know a lot about you, mostly by clever questioning. No genuine investment company ever calls in this way - it is a practice banned by regulators Financial Conduct Authority (FCA).

The phantom firm
There is no record of the firm on the FCA online register.

But look out for clones which simply steal an identity or near-clones where they use the name of a well known regulated organisation but change one or two details. In the past, there have firms with names such as Barclays NatWest or Prudential Goldman. They are not real - but their victims are.

No track record
The firm claims years of experience but it has just one director who has only been there for a few months. Would you trust a firm with no track record?

Stock photos and no details
Websites follow a pattern - they promise a lot but deliver no detail. They usually feature stock pictures - either City of London views or, a growing trend, photos of sport events. The implication is that rowers or rugby players show class, endurance and effort.

Nameless staff
They talk about "breadth of experience and skills" but the "our people" page has no names (unless they are cloned). Real companies show key staff, offering biographies.

Talk a good game
They overclaim - ludicrously. They talk about "a dedication to complying fully with the letter and spirit of the laws, rules and ethical principles that govern us. Our continued success depends upon unswerving adherence to this standard."

They have no intention of following any such standards.

Jack of all scams
They offer a wide range of "alternative" investments, featuring carbon credits, wine, gold, commodities, diamonds, property and other asset classes, promising expertise in all.

Now who in their right mind would expect the jeweller and the wine merchant on the high street to be one and the same? This variety is there to impress - at any one time, they are only flogging one item to victims, using a script which always stresses demand exceeding supply (whether true or not and it's usually not).

Copy and paste
They claim an investment "process with insight". But it is a platitude such as "making the right investment decisions requires a rigorous, reliable and transparent process". Well, it's hard to argue otherwise. Equally, "we know that research provides the backbone to any investment opportunity. Our leading research team provides forward-thinking market analysis and research on a range of asset classes, such as energy, precious metals, biofuels and real estate."

Note that this section includes assets which are not on the main page and introduces others. This is real copy and paste stuff.

Honestly, I'm honest
They emphasise they are trustworthy. A genuine company has no need to do this.

So stuff like "Core values are, and will continue to be, providing the highest calibre services and investments for our clients. In doing so, both integrity and trustworthiness are central to our business and our relationships."

HMRC warns about fake tax credits emails

New York, Paris, Peckham
The firm claims branches just about everywhere - New York, Paris, Tokyo, Hong Kong, Dubai, Frankfurt for starters. It is never explained what these foreign subsidiaries do or how to contact them. And that's because they don't exist.

A contact page with no-one to contact
The contact page has no names. But it may also feature basic mistakes such as the address of a head office in the City accompanied by a location map of Mayfair. They can't both be right. Always look at the address - it is invariably a maildrop or an office you can rent by the day (if not the hour).

Investing by PayPal
The website features a "payment page" where you can use your credit card or PayPal to send money. Don't.

Remember, scam firms don't have to fail on every one of my dozen points. Just one is enough to set alarm bells ringing.

Do these 20 things and you'll always be poor

easyJet launches Euro Currency Prepaid card

lovemoney.com — 2013-05-29T13:45:00+00:00

Filed under: Credit Cards

easyJet has launched the easyJet Euro Currency Prepaid card, which it claims will "help millions of passengers annually to spend currency abroad easily and securely". The budget airline has also declared that its new card offers competitive exchange rates over rival plastic.

The new easyJet Euro Currency Prepaid card is a chip and PIN Visa card. Cardholders can load money onto it after registering online or via text message. Once primed with cash, the card can then be used at 23 million outlets and 500,000 cash machines in the eurozone.

Unlike many rival debit or credit cards, this easyJet card can be used to make purchases and withdraw cash without incurring the usual fees and charges from card issuers for overseas use. That said, some foreign ATM operators do levy their own fees, so always check before use.

All funds loaded onto the easyJet card are applied in pounds sterling and then converted into euros at a fixed exchange rate for that day. There are no transaction fees or charges when loading £100 or more, but a one-off fee of £5.95 is applied when less than £100 is loaded for the first time.

After loading money onto the easyJet card (which can be done 24 hours a day, 365 days a year), cardholders can use their plastic knowing that their purchases will not be affected by fluctuating exchange rates. Also, as they can spend only what is on their cards, they can't 'break the bank' and end up borrowing on credit at sky-high interest rates.

How does easyJet's card compare?
Obviously, the acid test for this and similar plastic cards is how competitive they are when used abroad.

Here's how the easyJet Euro Currency Prepaid card compares with others on the market:

Card/ Feature	easyJet	FairFX Euro Card	Post Office Travel Money Card	Ryanair Cash Passport	Virgin Travel Money Card	Caxton Europe Traveller
Initial fee	£5.95 (Nil over £100)	£9.95 (Nil over £500)	None	£6	None	None
Monthly/ inactivity fee	None	None	None	£2.50 (after six months)	None	None
Negative balance fee	None	None	None	£10	None	None
Minimum load	€100	€60	£50	£150	£100	€150
Purchases fee (eurozone)	None	None	None	None	None	None
Cash fee (eurozone)	None	€1.50	€2	€2	€1.50	None
Purchases fee (worldwide)	None	None	None	£0.50	None	€1.75
Cash fee (worldwide)	None	€1.50	€2	£2	€1.50	€1.75

As you can see, easyJet's new prepaid card has a one-off fee of £5.95, reduced to zero if £100+ is loaded onto it. There are no monthly management or inactivity fees, no negative-balance fees, no charges for purchases made in the eurozone and no fees for cash withdrawals in the eurozone.

In addition, there are no fees for using the easyJet card to buy goods or withdraw cash outside of the eurozone, although out-of-currency foreign-exchange fees will apply.

To find out just how competitive easyJet's card is, let's compare the cost of getting a card, loading it with between £100 and £500 in cash, then making five purchases and five cash withdrawals in the eurozone.

Here are the results for all six cards listed above, ranked from lowest to highest total cost:

Card / Fees	easyJet Euro Currency Prepaid Card	Caxton FX Europe Traveller	Virgin Travel Money Card	Post Office Travel Money Card	Ryanair Cash Passport	FairFX Euro Card
Set-up fee	£0	£0	£0	£0	£6	£9.95
Purchase fees	£0	£0	£0	£0	£0	£0
Cash fees	£0	£0	€7.50 (£6.41)	€10 (£8.55)	£10	€7.50 (£6.41)
Total fees	£0	£0	£6.41	£8.55	£16	£16.36

Note: Uses exchange rate of £1:€1.17

As you can see, easyJet and Caxton FX's cards both levy no fees for our ten eurozone transactions. For the four remaining cards, total fees range from £6.41 at Virgin to £16.36 at FairFX. In terms of fees, easyJet's card is right up there with the best.

Don't leave home without travel insurance - compare cover here

The hidden hitch: exchange rates
Clearly, easyJet is keeping its fees to a minimum in order to make its prepaid card as attractive and easy to use as possible. However, there is one other crucial factor to consider when choosing a plastic card for use abroad: the exchange rates on offer.

In my experience, low or no fees are often offset and recouped thorough poor and uncompetitive exchange rates. For example, an exchange rate that is, say, 5% worse than the market-leading rate could cost you £25 for each £500 spent overseas.

Therefore, without comparing exchange rates, it's simply not possible to work out which of these cards offers the best value for money for holidaymakers. That's because cards with higher fees might offer market-beating exchange rates, while no-fee cards could camouflage their true cost through inferior exchange rates.

That said, my pick of the above deck of prepaid plastic cards would be the Caxton FX Europe Traveller card, as Caxton FX has a hard-won, award-winning reputation for offering attractive exchange rates. Then again, for overseas purchases, any of the top four in the above table would probably do the trick.

Prefer to use a credit card on your travels? Compare these fee-free options

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The danger of 'buy now, pay later' shopping

lovemoney.com — 2013-05-27T06:00:00+00:00

Filed under: Credit Cards

Many retailers, like Littlewoods, allow customers to buy something immediately but pay for it later.

From clothes to electronics, they are a handy way to have instant access to something even when you don't have the cash to pay for it.

But as with anything that seems too good to be true, there is a massive catch. When the interest-free period ends a huge amount of interest will be added to the debt.

How these shops work
Littlewoods isn't the only company which works this way. Very, Isme and Currys are just a few others.

If you use them correctly, these shops won't charge you any extra, so you can get that brand new washing machine and pay for it later.

Cara Newton, spokesperson for the Shop Direct Group, explains that this kind of shopping has been in place for many years and gives shoppers the option to defer payments for items which they need now, while allowing the flexibility of payment at a later date.

"Before choosing this option, customers are made aware of when their interest-free period will end and how much interest they would pay should they choose not to repay the full amount before this date," she said.

But the danger is that many people who aren't able to pay for something straight away probably aren't going to have the funds to pay for it in six months or a year's time either.

Interest rates
The amount of interest charged varies between different shops.

Very says if you can't clear your balance after the 0% interest period ends you'll need to pay £5 a month, or 7% of the amount, whichever is greater, and there are steep charges if you miss a payment.

To show just how much extra you might have to pay, when buying a new iPad, for example, from Littlewoods, the upfront cost is £499. You can choose to pay this over 52 weeks, interest free, or over 104 weeks at a rate of 34.9% - which brings the total up to £670.90, or nearly £200 more than you would have originally paid.

On top of this if you're late with a payment there's a whole host of fees to watch out for. It's a £12 charge for any late payments and another £12 if you want the debt cleared. There's also a £12 charge for any debt collection activity undertaken - such as letters or telephone calls - a £32 fee for a home visit for debt collection and a £25 'debtor trace' fee.

However, Newton does point out that products are only made available to people who the company is confident can afford the repayments, so this kind of finance is still greatly different to the likes of payday loan companies.

Most have the option of buying something and then paying for it in full after a set period, but this often means you'll also have to pay a 'one-off' payment to do so.

At Currys, for example, if you choose its in-store buy now pay later scheme, you can pay off the amount in full but you'll need to pay a settlement fee of £25.

To give you an example, the table below lists some of the most common shops where you can buy now pay later and the interest rates which kick in after the 0% period ends.

Shop	Interest rate after 0% period ends (APR)
Argos	29.9%
Brighthouse	29.9%
Currys	£25 settlement fee on BNPL goods
Freemans.com	32.9%
Gratton	34.9%
Isme (Options account)	7% a month, or £5 of your balance - whichever is greater
Littlewoods	34.9%
Very (Options account)	7% a month, or £5 of your balance - whichever is greater

Why these shops work
When something useful breaks around the house, whether it's the oven, the dishwasher or the hoover, it needs to be replaced. And if you've not got the ready funds to pay for a new item, buying on credit is a tempting solution.

The idea of not having to pay for something for a year, or two years, is attractive but it doesn't work unless you pay it off on time - and even then there's a chance that you may be paying over the odds.

Buy second hand
One alternative is to search second-hand websites. Although it's not going to be brand new, it's easy to find something of good quality and often things are re-sold on websites such as eBay or Gumtree after only being used once or twice.

With any electrical products make sure you get the original documentation and check something works before you take it away (if picking it up from someone's house).

Most websites allow you to set up alerts so you'll be notified when a specific item is listed.

Choose a 0% credit card
There are a whole host of credit cards on the market offering significant interest-free periods, from those which offer 17 months on 0% purchases to those with balance transfers for more than two years.

The benefit of these is you are given breathing space to pay for things, and the interest rates are around 16.9% on average after the initial 0% ends. This is a lot lower than the companies mentioned above but you'll still be left paying out if you don't clear the debt during the 0% period.

Buying with a credit card also offers added protection if the item costs more than £100.

Earn cashback on your spending with a cashback credit card

Get help with your finances
If you owe money to a company and you're struggling to pay off the debt, in the first instance it's best to tell the firm instead of ignoring the problem. In the best case scenario it may allow you to miss one payment, or pay late without a fine.

Instead of resorting to a payday loan - which will ultimately leave you in more debt - a charity such as Step Change can give you help for free. It can work out a debt management plan, or speak to a lender about an interest holiday, and will give you free, confidential advice. Read Where to get free debt advice for more on where to go if you need help.

Take a look at the top credit cards for spreading the cost of a purchase

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How to dispute your credit record

Hannah Ricci — 2013-05-26T05:00:00+00:00

Filed under: Credit Cards

Whenever you apply for credit the state of your credit record will determine how much you can borrow, what rate you can borrow at and crucially, whether you can borrow at all.

So it is vital to check your rating regularly to ensure it is up to date and any mistakes are put right pronto.

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The top credit cards for paying off your debt

lovemoney.com — 2013-05-21T07:30:00+00:00

Filed under: Credit Cards

The battle between credit card companies to offer the best balance transfer deal is hotting up. And it means you can have a record length of time to pay off your debts.

The competition between credit card companies has never been fiercer, particularly when it comes to 0% balance transfer credit cards.

Barclaycard has increased its longest interest-free introductory period to 27 months, in response to NatWest and Royal Bank of Scotland (RBS) increasing their 0% periods to 26 months. And Virgin Money has come to the party too with its own 26-month card.

This is great news for anyone who has credit card debts and a good credit history.

The longest 0% period
There are currently nine credit cards offering a 0% introductory period of two years or longer.

Credit card	0% balance transfer period	Balance transfer fee	Cost of transferring £2,500
Barclaycard 27-Month Platinum Visa	27 months	3.5%	£87.50
NatWest Platinum MasterCard	26 months	2.65%	£66.25
Royal Bank of Scotland Platinum MasterCard	26 months	2.65%	£66.25
Virgin Money MasterCard	26 months	2.99%	£74.75
Barclaycard 25-Month Platinum Visa	25 months	2.4%	£60
Halifax BT 25-Month MasterCard	25 months	2.5%	£62.50
Tesco Clubcard Credit Card for Balance Transfers	25 months	2.9%	£72.50
MBNA Platinum	24 months	2.85%	£71.25
Fluid 24-Month Balance Transfer Visa	24 months	2.89%	£72.25

As it stands the Barclaycard 27-Month Platinum Visa is the most expensive longer-lasting deal, charging 3.5%, which is 0.85% (or £21.25 on a debt of £2,500) more than NatWest and RBS. However, you get the longest period currently available (an all-time record) to pay off your debts.

However, the Barclaycard 25-Month Platinum Visa charges a fee of 2.4%, which would save you £27.50 if you're transferring £2,500 of debt. We should point out though that you can't transfer balances from other Barclaycards.

Could you avoid interest on your debt? Take a look at the top 0% balance transfer credit cards

The cheapest balance transfer fee
If you're chasing the cheapest balance transfer card rather than the longest lasting, the Halifax All in One credit card and the Lloyds TBS Platinum MasterCard, which both offer 15 months with no interest to pay, charge 1% balance transfer fees, meaning you would only pay £25 to move £2,500 worth of debt.

It's important you make sure you can repay your debts during the 0% period or you'll end up paying interest. If you take out the Halifax or Lloyds cards you will be charged 17.9% APR after 15 months on any debt you have left.

Once your deal ends you could try transferring whatever you have left onto another balance transfer credit card, but there is no guarantee you will be successful.

Take a look at the credit cards with the lowest balance transfer fees

Personal loans
If you have larger debts, for example over £7,500, you could consolidate them into one personal loan. Right now, loan rates from mainstream lenders have fallen to as low as 5%.

The top mainstream loan rate for borrowing over £7,500 comes from Derbyshire Building Society at 5%, followed by Clydesdale, Sainsbury's (dropping to 5% if you can pay it back in three years or less) and Tesco at 5.1%.

Consolidating your debts into one loan repayment can make sense, but only if you can afford your monthly repayments and you don't go out and start spending again.

Compare the latest loan rates

How to dispute your credit record

Experian, Call Credit and Equifax. By law, all the credit agencies are required to provide you with a one-off copy for just £2 so don't be hoodwinked into signing up to pay a monthly fee.
" href="http://www.blogcdn.com/money.aol.co.uk/media/2013/05/168262356.jpg" data-media-id="aol_5903868" data-photo-src="http://www.blogcdn.com/money.aol.co.uk/media/2013/05/168262356.jpg" data-credit="Getty">1. View your credit record
Don't wait until you need to apply for credit to view your credit record – do it now so you know where you stand and can deal with any disputes. When applying for credit, you give the lender permission to view your record, so it makes sense to view it yourself first.

You can access your record via any of the three main credit agencies in the UK: Experian, Call Credit and Equifax. By law, all the credit agencies are required to provide you with a one-off copy for just £2 so don't be hoodwinked into signing up to pay a monthly fee.

Your report shows what credit accounts you've had and whether you've made repayments on time and in full. According to Experian, items such as missed or late payments stay on your credit report for at least three years, while Court Judgments for non-payment of debts, Bankruptcies and Individual Voluntary Arrangements stick around for around six years.

Your credit report shows the current address at which you are registered to vote as well as details of other addresses you've been linked to in the last six years. Another section lists people you have a financial connection with, such as a joint mortgage. When you apply for credit, lenders are able to look at their credit history as their circumstances could affect your ability to repay what you owe.

3. Look for mistakes

Scrutinise your record to make sure there are no mistakes. Even a minor error such as an incorrect address or wrongly linked account could hinder your chances of being approved for credit so make sure all your details are correct and that all your borrowings are on record. If there is a discrepancy, contact the three main credit agencies to get it corrected.

4. Deal with default notices

A default notice is note that a lender puts on your credit file if you fall behind with your payments. It is a warning sign to future lenders about your reliability to repay credit and could mean that they will be less likely to lend to you or will increase the interest rate.

If the default notice is incorrect, perhaps because you have repaid the loan in full or did not take out the credit and suspect that you have fallen victim to fraud, you can apply to have a default notice removed. A default notices will only be removed if it is factually incorrect – not simply because you are embarrassed by it.

5. Contact for correction

Start by writing to the agency asking it to either remove or change the entry that you think is wrong. It will investigate the matter and find out whether you have been the victim of ID theft or a bank's mistake.

Within 28 days from receipt of your letter the agency should tell you how the bank has responded. If the bank agrees to change the entry, they will authorise the agency to update their records. They should also send updates to any other credit reference agencies they use.

You can also contact your lender directly to query a mistake. If the lender agrees to the discrepancy, ask them to confirm this in writing on their letterhead and send a copy to the agency, asking them to update your file.

6. Issue Notice of Correction

If you are unhappy with the response or would just like to explain a missed payment on your file you can send a Notice of Correction. This is a statement of up to 200 words that will be added to your file. Although lenders don't have to take this information into account, it at least gives you the chance to tell your side of the story.

Experian states that agencies will also help you escalate the dispute to a third party arbitrator if necessary, such as the Information Commissioner's Office.

Manchester United's new Champion credit card is no table topper

lovemoney.com — 2013-05-13T10:30:00+00:00

Filed under: Credit Cards

MBNA has launched a new Manchester United credit card to mark the club's 20th league title win. But does it deserve its 'Champion' name?

Financial products associated with sports teams are almost always rubbish.
There are savings accounts that pay frankly insulting rates of interest, but promise to help prop up your team. Take the Gillingham FC savings account from Kent Reliance Building Society, paying an incredible 0.25% AER on your cash, but with the promise of donating 1% of average monthly balances to the club.

And then there are the credit cards, which are at best mediocre. Take the Celtic credit card, which offers nothing bar the opportunity to earn points for your spending which can be redeemed against "money can't buy experiences".

However, there's a new sports-related product that might change this somewhat - the Manchester United Champions credit card

The Manchester United Champions credit card
To mark the club's 20th league title win, the official Manchester United credit card is being replaced until the start of next season by the Champions credit card.

Appropriately, it offers 20 months of 0% interest on balance transfers, with a 3% transfer fee. You can also get 20 months interest free on money transfers, this time with a 4% fee, and 0% on purchases for three months.

There's also the typical rewards hook, where using the card means you get entered into all sorts of competitions for exciting United-related prizes.

As sports cards go, it's pretty decent.

How it compares to other sports credit cards
The Manchester United card, as with most sports credit cards, is provided by MBNA. Here's how it compares to other cards designed for supporters:

Card	0% balance transfer period	0% purchase period
Manchester United Champions credit card	20 months (3% fee)	Three months
Arsenal credit card	16 months (3% fee)	Three months
Aston Villa credit card	16 months (3% fee)	Three months
Chelsea credit card	16 months (3% fee)	Three months
Liverpool FC credit card	16 months (3% fee)	Three months
Tottenham Hotspur credit card	16 months (3% fee)	Three months
Rangers credit card	12 months (3% fee)	Three months
West Ham United credit card	12 months (3% fee)	Three months
Derby County credit card	Six months (5% fee)	Nine months when buying your season ticket
Everton credit card	Six months (5% fee)	Nine months when buying your season ticket
Fulham credit card	Six months (5% fee)	Nine months when buying your season ticket
Leeds credit card	Six months (5% fee)	Nine months when buying your season ticket
Sheffield Wednesday credit card	Six months (5% fee)	Nine months when buying your season ticket
West Bromwich Albion credit card	Six months (5% fee)	Nine months when buying your season ticket
Wolverhampton Wanderers credit card	Six months (5% fee)	Nine months when buying your season ticket

It's not just football though. MBNA also offers a series of credit cards to rugby fans, all of which offer nine months of 0% interest on both purchases and balance transfers, with a 4% transfer fee. You can get one for the following clubs:

Bath
Gloucester
Harlequins
Leeds Carnegie
Leicester Tigers
London Irish
London Wasps
Newcastle Falcons
Northampton Saints
Sale Sharks
Saracens
Worcester Warriors

Club cards are still pretty rubbish
So the new card from Manchester United is indeed the 'champion' of sports cards. But it's still not that good.

There was a time when a 20-month 0% balance transfer period would raise eyebrows, but it's unspectacular these days. All of the cards below offer longer interest-free periods

Card	0% balance transfer period	Transfer fee
Barclaycard 26-month Platinum Visa	26 months	3.5%
Barclaycard 25-month Platinum Visa	25 months	2.4%
Halifax BT 25-Month MasterCard	25 months	2.5%
Tesco Clubcard credit card for balance transfers	25 months	2.9%
MBNA Platinum Visa	24 months	2.85%
Fluid 24-month BT Visa	24 months	2.89%
NatWest Platinum MasterCard	24 months	2.9%
RBS Platinum MasterCard	24 months	2.9%
HSBC Visa*	23 months	3.3%

*Must hold current account to be eligible for credit card

That's nine cards that all offer a better deal than the Champions credit card. That seems more mid-table than champion to me.

The sacrifices of supporting your club
The fact is that if you go for a club-associated financial product, whether it's a credit card or a savings account, you won't be getting a top deal. You'll either be sacrificing months of interest-free borrowing or significant amounts of interest on your cash, and all for the sake of a few quid off at the club shop and the chance to win some prizes.

If you want to get the most out of your money, keep it separate from your team!

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The lenders who won't damage your credit score

lovemoney.com — 2013-05-13T10:15:00+00:00

Filed under: Loans, Credit Cards

Some lenders will let you know whether they are likely to approve you for a credit card or loan without leaving so much as a mark on your credit record.

The main problem with applying for most loans and credit cards is that applying leaves a mark on your credit record straight away, whether you're accepted or not.
That's why, if you make a few applications in a short space of time, lenders will be less likely to lend to you. They seem to believe it's a sign you're desperate, rather than someone who is sensibly shopping around!

The second problem is that you go through the time and effort of submitting all the detailed information they need about you to find the offered rate is either too high or you were rejected.

Most frustrating. A soft check can require less information and paperwork, and you can put off reading the bulk of the small print until you're more confident of being accepted.

Six lenders claim to be different
Six personal loan and credit card providers stand out by allowing you to do quotation searches as standard. These "soft searches" of your credit record don't leave a mark, unlike the full searches.

You'll then be given a quotation - an indication as to whether you'll be accepted - as opposed to a full offer.

Loans with soft searches
Here are the loans that come with soft searches as standard:

Loan	Interest rates	More
Zopa Loan	At least 5.3% over three years At least 5.8% over four years At least 5.8% over five years	Repay early in part or in full with no penalty
Nationwide Personal Loan	At least 5.9% for current-account holders At least 6.2% for non-account holders	N/A
RateSetter Loan	At least 6.9% over three years At least 7.6% over four years at least 7.4% over five years	Repay early in part or in full with no penalty
encash	See below	Repay early in part or in full with no penalty

The figures in this table are based on £7,500 loans. Shorter loans are usually, but not always, more expensive. If you want to borrow less money, you will normally be asked to pay more. Nationwide, for example, charges at least 11.9% for loans of £3,000. You can quite often get the same rates up to £15,000, however.

encash works quite differently, not least in that it lends to a wider range of profiles than most lenders (from A* to E grade borrowers). This is probably what prohibits it from giving a representative APR like the others in my table, since the rate has to apply to half of its borrowers. It told me that the average rate - not the lowest rate - between all its borrowers of all grades is 13%.

Most of these rates are competitive. For comparison, the cheapest five loans of this size on the market all cost5%-5.1%, through Derbyshire Building Society, Sainsbury's Bank, Clydesdale Bank, Barclays and Tesco. None of those lenders offer soft searches, even if you ask them nicely. To see the most competitive loan rates head to The cheapest personal loans

Don't get caught out: Nationwide's trading divisions, such as Derbyshire Building Society, do not offer quotation searches, even though they often have the best products in the group.

Only people with fantastic financial profiles should expect to receive the interest rates shown in the table. Everyone else will either be rejected or will probably be asked to pay far, far higher interest rates, and you should then be asking yourselves whether the cost is simply too much.

Zopa and RateSetter will lend to really great borrowers only.

Credit cards with soft searches

Card	Balance transfers	Purchases	More
Barclaycard *	0% for 26 months 3.5% fee	0% for 6 months	N/A
Fluid Credit Card	0% for 24 months 2.9% fee	0% for 3 months	N/A
Nationwide Select Credit Card (for c/a holders)	0% for 20 months 3.1% fee	0% for 12 months	0.5% cashback on all sterling purchases Unlimited commission-free purchases abroad
Nationwide Credit Card (1)	0% for 20 months 3.1% fee	0% for 3 months	You have to spend to earn commission-free purchases abroad
Fluid Credit Card	0% for 15 months 1.5% fee	0% for 5 months	N/A
Barclaycard*	0% for 7 or 14 months depending on your profile 2.9% fee	0% for 7 or 14 months depending on your profile	N/A
Nationwide Credit Card (2)	N/A	0% for 6 months	You have to spend to earn commission-free purchases abroad

*Barclaycard has many other different cards available, all with soft searches.

All these deals are either table-topping cards or pretty close.

Not all soft searches are equal
There are no guarantees of success even after getting a positive soft quote.

Most of these lenders write on their websites that you're "likely" to be accepted if the soft search gives you a positive result. Michelle Slade from Nationwide also told me: "It is fair to say that the majority of people who go on to fully apply for a loan get the indicative rate from the soft quote."
After doing a soft search with Barclaycard, it will then tell you the percentage chance of being accepted after a full search.

Those trying to borrow from RateSetter have nothing to fear. The company tells you whether you're accepted without doing a hard search. Although the credit reference agency might ultimately oblige RateSetter to do a "hard search" before lending to you, RateSetter will only do so after you have accepted the quote, and the quote won't change as a result.

Zopa is similar. A spokesperson told me: "We don't change an applicant's quote. What they receive initially as a personalised (soft search) quote is what they get as a final APR."

Non-standard soft searches
In theory, any lender can do an ad-hoc soft search, but I've contacted building societies, banks and supermarket banks, and not one has yet revealed that it's willing to do a soft search even if you specifically ask for it. They all said they didn't do so, except a few who didn't answer me at all.

Discussion board users report having no success persuading them either. However, your own bank might pre-approve a loan based on your records with it. This is quite common, although presumably less so in these times, when banks are being more cautious about who they lend to.

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Bespoke offer service launched

Press Association — 2013-05-08T14:00:00+00:00

Filed under: Credit Cards

Barclaycard is targeting consumers suffering from "offer fatigue" with the launch of a service promising tailored deals based on their buying history.

The Bespoke Offers website will launch on Thursday with partners including Tesco Direct, British Airways, Virgin Holidays, Shell, Samsung and Starbucks and will be open to all consumers, not just Barclaycard and Barclays customers.
Consumers will be encouraged to browse the website and mobile app, and those who choose to register will be offered deals relating to their selected preferences and, if they agree, their buying history.

It follows the rapid increase of daily deals providers such as Groupon and Wowcher, and concerns that consumers are becoming tired of a "scattergun" approach to offers.
It will offer a range of pre-pay deals and money-off discounts via scanable codes and direct links to merchant websites.

Barclaycard claims the deals could save up to £2,100 per household per year, as well as drive tens of millions of pounds of sales for UK retailers.

Barclaycard chief executive Valerie Soranno-Keating said: "We see how much UK consumers are trying to squeeze more out of every pound they spend and how UK retailers are struggling to provide incentives to the right customers to encourage more sales.

"We created bespoke offers for every consumer and retailer in the UK. We estimate that if the typical UK consumer made maximum use of bespoke offers across their household spend they could potentially save as much as £2,100 per year. For UK retailers this could amount to tens of millions of pounds in additional sales."

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Over 50s missing out on the best credit cards

lovemoney.com — 2013-04-19T07:30:00+00:00

Filed under: Credit Cards

Millions of people aged 50 or above are relying on their banks for credit cards and missing out on getting the best deals.

One in three does not shop around before picking out a credit card and is happy to settle for an average deal, according to Saga research.

The main reason for not seeking out the market-leading deals is because of the hassle involved. But this means millions are losing out on extras such as extended 0% purchase periods, cashback and rewards, and free overseas spending.

Settling for a poor credit card

When choosing a credit card, a third of those aged over 50 will take whatever credit card is offered by their bank while a quarter will choose a card based on the freebies it includes, such as airmiles or shopping vouchers.

Balance transfer cards, which offer a certain period of 0% interest, are also not being used efficiently. A third of people in this age bracket won't switch credit cards at the end of the 0% period and are therefore left paying expensive interest payments on the balance left on the card.

A smaller number (11%) will choose a card based on the overseas charges but only 6% will pick a card because of the introductory 0% interest rate.

Cards for over the 50s

In the credit card market the only card specifically for those aged over 50 is the Saga credit card. It's a good all-rounder and offers nine months of 0% interest on balance transfers and new purchases.

The interest rate is also attractive at 11.9% and it doesn't charge foreign currency fees. However, as with any credit card, the interest rate won't apply to all cards as it's only the headline rate and could be higher depending on your credit history.

It's a competitive card but there are better deals around which are open to everyone. Just because a card is aimed at those over 50 doesn't mean it's the best deal and it's important to shop around first to get the best card for you.

Picking the best credit card for you

Whatever age you are the main thing to look for is a card which meets your individual needs. There are a lot to choose from but a little research will pay off in the long run.

0% purchase cards

When looking for a card with a 0% purchase period, Halifax and Tesco are top of the tables with 17- and 16-month 0% periods on offer. They are followed by one from M&S with a 15-month 0% period.

All of these have an average interest rate of 16.9% - so higher than the Saga card - but you can get loyalty points with the Tesco and M&S cards. You can also buy travel money through M&S with no cash advance or foreign exchange fees.

Barclaycard, NatWest and Royal Bank of Scotland also offer longer 0% periods so if this is what you're looking for in a card go for one of these.

The table below shows the top five cards for 0% purchase deals and several, such as the cards from NatWest and M&S, also have attractive freebies thrown in.

Card	0% Purchase Period	0% Balance Transfer Period	APR	Extras
Halifax Purchase Credit Card MasterCard	17 months	Six months	16.9%
Tesco Clubcard Credit Card For Purchases	16 months	Nine months (2.9% fee)	16.9%	Clubcard points on your spending.
M&S Bank Credit Card	15 months	12 months (2.9% fee)	16.9%	M&S points on your spending, no cash advance or foreign exchange fees on travel money
Halifax All In One Online Mastercard	15 months	15 months (1%)	17.9%	Market leading balance transfer and purchases card
NatWest YourPoints MasterCard	15 months	Nine months (1.5% fee)	17.9%	Earn YourPoints on every £1 spent, double points for the first nine months from account opening and 2,500 bonus points every year

Credit card freebies

Freebies are a big draw for the over 50s, the Saga research shows, and there are a few good cards on the market offering attractive incentives for signing up.

Our article - The best reward credit cards - lists the top cards in this range and here I've listed the top five on offer.

Each offers a different type of reward so it's important to pick one which has freebies you'll actually use. For example if you usually shop at Tesco the ClubCard for purchases is a good option. Alternatively, if you fly a lot the Avios points from the Lloyds TSB Duo Avios Credit Card will be a benefit.

If you can't find anything useful a cashback card might be better, such as the 123 card from Santander which pays tiered cashback on your household spending. Read The best cashback credit cards for a full run down.

Card	Rewards	APR	Extras
Lloyds TSB Duo Avios Credit Card Account	Up to 1 Avios for every £1 spent, double points on your spend abroad and 1,500 points for every £1,000 balance transferred from a single provider	17.9	You could get 15,000 Avios - enough for a return flight - when you successfully apply for the Duo Avios Credit Card Account and spend £500 a month for the first three months.
MBNA More Rewards Credit Card Account	Two points for every £1 you spend on the American Express, one point for every £1 spent on the Visa.	12.9%	Double points for the first 90 days from account opening.
MBNA Limited Amazon.co.uk Credit Card	Two points for every £1 spent at Amazon, one point for every £1 spent elsewhere.	16.9%	For every 1,000 Amazon points you'll get a £10 voucher.
Tesco Clubcard Credit Card for Purchases	One Clubcard point per £4 spent, five points per £4 spent in Tesco stores and on fuel at Tesco Petrol Filling Stations (excludes Esso Fuel).	16.9%
Lloyds TSB Premier Duo Avios Credit Card Account	Up to 1.25 Avios for every £1 spent, double Avios on your spend abroad and 1,500 Avios for every £1,000 balance transferred from a single provider	23.7%	You could get 20,000 Avios points when you apply.

What else is on offer?

Overseas spending is a key extra for more than one in ten over 50s and the Saga card is one of the best as it has no foreign currency fees.

The Halifax Clarity card is also free from overseas charges and open to anyone. There are no fees with the M&S Bank and Post Office cards on cash advance or foreign exchange money either, while the Post Office also cuts the fees on overseas purchases.

The research from Saga says those over 50 aren't keen on finding long 0% interest-free deals, probably because they're less likely to have a lot of credit card debt then younger people.

But for those who do, right now the longest deals from the likes of Barclaycard, Halifax and Tesco last two years or more which is a good option for those looking for a long break from interest payments. Check out The best 0% balance transfer credit cards.

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Putting cashback credit cards to the test

lovemoney.com — 2013-04-03T07:00:00+00:00

Filed under: Credit Cards

We put the leading cashback credit cards to the test by seeing which card performs best in different scenarios.

Cashback credit cards are great. You can earn money back as you spend and the cashback rate can be as high as 6%!

The only real drawback is that most cashback cards now charge an annual fee, so you have to be confident that you'll earn enough cash to make a profit once the fee is paid.
It can also be hard to decide which card is best for you. So I thought I'd create three imaginary people and see which card is best for each of these folk. Hopefully that will help you with your own cashback choice.

But first, I'll just run through the basics on the four leading cards right now:

Barclaycard Cashback card
This card gives very generous cashback when you first sign up.

For the first three months you have the card, you can earn 6% cashback on your five largest purchases each month - up to a maximum of £120. You'll earn 0.5% on your remaining purchases.

After the introductory period, you'll get 2% cashback on your five largest monthly purchases plus 0.5% on the others. That's as long as you make at least 15 purchases each month. Plus the rate will double to 4% for one month each year to mark your anniversary with the card, although again only on your top five purchases.

On the downside, there's a £24 annual fee.

To get the most from this card, you need to spend a fair bit, and ideally a big chunk of your spending will be on a relatively small number of items each month. Then you'll get more from the 'five biggest items' cashback rate.

American Express Platinum card
The American Express Platinum Cashback card also has a special offer for the first three months you have the card. You can earn 5% on your spending up to a maximum of £100 cashback.

What's more, there's a flat cashback rate of 1.25% on all of your spending after that, regardless of how much you spend.

As with Barclaycard, there's an improved rate of 2.5% on your 'anniversary month' each year. However, you do need to spend £10,000 in the previous year to qualify for this 2.5% rate.

There's also a £25 annual fee.

Santander 123 card
The Santander 123 Credit Card pays you 1% on supermarket spending, 2% in department stores and 3% on petrol or train fares. There is a £24 yearly fee, though if you move your current account to the Santander 123 current account, there's no fee for the first year.

The card is great for people who spend a lot on petrol and at the supermarket.

Aqua reward card
The great thing about this card is that it doesn't charge a fee. It also offers a very generous 3% cashback rate.

However, the cashback is capped at £100 a year, so you'll only get a reward on your spending up to £3,333 each year.

Let's now move onto the scenarios:

1. Hard-working mum who is fairly affluent
This mum spends £9,200 a year in total on her card.

She has to drive to work so she spends a lot on petrol and she also does a lot of shopping for her family at the supermarket.

Here is how much she spends on her credit card each year:

- £3,000 a year on petrol (£250 a month)

- £600 in department stores (includes John Lewis, Debenhams, Harrods, BHS and Fenwick) (£50 a month)

- £4,200 at supermarkets (£350 a month)

- £1,400 on other credit card spending (£117 a month)

- £4,200 on her five biggest purchases each month (£350 a month)

Here is how much cashback this mum gets with the different cards:

Cashback rates for hard-working mum

Card	Year one cashback (month/year)	Year two cashback (month/year)	Annual Fee	Year one profit (month/year)	Year two profit (month/year)
Santander 123 Credit Card	£12/£144	£12/£144	£24	£10/£120	£10/£120
American Express Platinum Cashback	£15.52/£186.20	£9.58/£115	£25	£13.43/£161.20	£7.50/£90
Barclaycard Cashback Visa	£12.58/£151	£9.66/£116	£24	£10.58/£127	£7.66/£92
Aqua reward card	£8.33/£100	£8.33/100	£0	£8.33/£100	£8.33/100

I've worked out figures for year one and year two because the mum can get extra cashback in year one with Barclaycard and American Express thanks to their introductory special deals.

So in the first year, 'mum' would get the most cashback from American Express thanks to the very generous 5% rate in the first three months. Barclaycard comes second and Santander is in third position.

But from the second year onwards, the Santander 123 card is clearly top. That's mainly thanks to the generous 3% cashback rate on supermarket shopping.

Aqua only pays £100 because that is the cashback limit for the year.

Year one winner: American Express Platinum Cashback

Year two winner: Santander 123 card

2. Big-spending executive
This big-spending executive spends as follows on her card each year:

- £3,600 on train travel

- £3600 in department stores (£300 a month)

- £3,600 at supermarkets (£250 a month)

- £10,800 in other spending (£900 a month)

- £10,800 on five biggest monthly purchases (£900 a month)

- Total: £21,600 (£1800 a month)

Card	Year one cashback (month/year)	Year two cashback (month/year)	Annual fee	Year one profit (month/year)	Year two profit (month/year)
Santander 123 Credit card	£15.75/£189	£15.75/£189	£24	£13.75/£165	£13.75/£165
American Express Platinum Cashback	£39.38/£472.50	£24.38/£292.50	£25	£37.29/£447.50	£22.29/£267.50
Barclaycard Cashback Visa	£31.50/£378	£24/£288	£24	£29.50/£354	£22/£264
Aqua Reward card	£8.33/£100	£8.33/£100	£0	£8.33/£100	£8.33/£100

American Express clearly wins in year one thanks to its 5% introductory deal. In year two, American Express just pips Barclaycard.

If our big spender had just concentrated a bit more of her spending into her five biggest monthly spends, then Barclaycard would have won.

It's also worth noting that I've assumed that the big spender spends exactly the same amount each month. In reality, she might try to spend more in her 'anniversary month' to benefit more from that month's bonus rate (4% with Barclaycard, 2.5% with Amex). So that would boost Barclaycard and American Express's lead over Santander.

Santander's numbers would look better if the big spender spent a greater proportion of her income at the supermarket, or even better, at department stores.

Winner: American Express Platinum Cashback

3. Fairly low spender
Our low spender spends as follows each year:

- £1,500 on petrol (£125 a month)

- £300 at department stores (£25 a month)

- £2,000 at supermarkets (£166.66 a month)

- £1,000 on other spending (£83.33 a month)

Total spending: £4,800

Card	Year one cashback (month/year)	Year two cashback (month/year)	Annual fee	Year one profit (month/year)	Year two profit (month/year)
Santander 123 card	£5.92/£71	£5.92/£71	£24	£3.83/£46	£3.83/£46
American Express Platinum Cashback	£8.75/£105	£5/£60	£25	£6.66/£80	£2.92/£35
Barclaycard Cashback	£6.17/£74	£4.78/£57.33	£25	£4.17/£50	£2.78/£33.33
Aqua Reward	£8.33/£100	£8.33/£100	£0	£8.33/£100	£8.33/£100

In the low spender category, Aqua is the clear winner. 3% cashback and no fee is an unbeatable combination if you don't spend that much on a credit card.

Winner: Aqua Reward card

Be careful!
So hopefully this will help pick the right cashback card for you. Just remember that you must pay off your in bill full every month. If you don't do that, you'll be hit by interest charges that will easily outweigh any cashback that you may earn.

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Credit builder credit card offering interest-free purchases

lovemoney.com — 2013-03-14T09:34:00+00:00

Filed under: Credit Cards

Barclaycard has reintroduced the three-month interest-free period on purchases on its Initial credit card.

Ordinarily 0% deals are reserved for borrowers with good credit ratings. However, the Initial card is designed for borrowers with no credit history at all, making the deal very attractive.

The Initial credit card

The 0% period is a great boost for borrowers, but just as important is what happens once than interest-free period comes to an end. The Initial card boasts a representative APR of 29.9%, significantly higher than most mainstream cards, but very competitive for credit builder cards.

The table below covers the five top cards designed for borrowers with either no credit history or a poor one and the interest rates they offer.

Credit card	Representative APR
Aqua Classic MasterCard	29.7%
Vanquis Bank Aquis Visa	29.8%
Barclaycard Initial Visa	29.9%
Capital One Classic	34.9%
Aqua Advance MasterCard	34.9%

Who can get the Barclaycard Initial?

You may be accepted for the Barclaycard Initial if you meet the following conditions:

You're 18 or older
You have no credit history
Your financial situation has improved in the last 12 months
You have not been declared bankrupt in the last 12 months
You've had no County Court Judgments or Individual Voluntary Arrangements in the last 12 months
You don't already have a Barclaycard
You've lived at your address for at least three months

Cards that offer a little extra

The Barclaycard Initial is the only credit builder card that offers a 0% period, but it's not alone in being a little innovative in the way it works.

For example, the Aqua Advance MasterCard initially comes with an interest rate of 34.9%, but you can cut that down to 19.9% if you manage the card well. So long as you meet your payments on time each month you can cut the interest rate by 5% a year, until the rate reaches 19.9%.

With Aqua cards you also benefit from a free credit checker.

There's also the Capital One Classic Extra, which pays cashback! You can get 0.5% cashback on all of your spending, and should you pay on time each month you'll be rewarded with a £10 annual bonus.

Head over to our credit builder comparison centre to see all of the cards in the market and how they compare.

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Why making credit card overpayments will actually cost you!

lovemoney.com — 2013-03-12T08:30:00+00:00

Filed under: Credit Cards

I have now either recorded or personally identified 43 different tricks that credit card companies use to make you either spend more money on your card, make you pay more interest or nab you with penalty fees and other costs.

And now another trick has emerged: if you make overpayments, some lenders will reduce your next direct debit payment by the amount of the overpayment, negating the benefit of overpaying.

Lenders that are alleged to carry out this trick include Barclaycard, Lloyds TSB, Halifax, Bank of Scotland, Santander and even the popular Nationwide Building Society.

When you overpay, you reduce the interest you pay on your debt. This can be considerable. Every £50 you overpay today might easily reduce the interest you pay over two years by £40.

Also, if you're overpaying in order to clear your debt before a cheap introductory deal expires, you may be confused if you don't check your credit card statements every month to ensure your regular payments haven't been reduced.

Plus, reducing your debt more quickly puts you in a safer position whenever you suffer one of life's inevitable emergencies or unforeseen costs.

How to use your cards safely

There are too many card tricks to explain each one individually here, especially as some are quite complicated. However, I'll try to condense the 43 tricks into a few simple general rules to help you avoid or deal with most of them, including all the worst ones. These are:

Have an achievable budget designed to regularly overpay as much as you can afford.
You must always pay the minimum every month - even if you have a 0% deal - to avoid penalty charges, the loss of 0% deals, and damage to your credit rating.
If you just pay the minimum because you're on a 0% deal, ensure you save the difference in a savings account so that you can pay off the debt, or as much as you can afford, before the deal ends. Don't assume you'll be able to roll over the whole debt onto another cheap deal at the end of it.
Don't use credit cards for gambling, or buying gift cards or gift vouchers, or for taking cash out at a cash machine.
Don't buy foreign currency or postal orders with your card unless you've checked that it will be charged as a regular purchase, not as a "cash advance".
Don't get stuck on standard interest rates (APRs). Always shop around for another deal and make a note in your calendar when introductory deals are approaching their end.
Don't see your credit limit as a target and don't be tempted if you're "rewarded" with a larger credit limit.
Don't pay a fee for a card, or choose a card, because it offers any insurance policies or other products that are added to it. Despite grand claims, these are usually of very little value - if they're worth anything at all.
Don't be taken in by claims that you'll get access to "exclusive" foreign currency deals or other financial or travel products. You will almost certainly do far better by shopping around.
Ensure you're not beguiled into buying a spontaneous holiday deal or other linked offer without taking a few days to think about whether you really want it and to compare your other options.
With most credit cards, in most circumstances, you should not use them to make payments overseas (although you could get better protection from fraud if you're making large purchases). Read The best credit cards to use on your travels.
Read the small print for inactivity penalties; to be sure you're not caught, use your card for some standard purchases (and get that better protection on top), but always pay off your card bill soon afterwards.
Set up direct debits to pay off as much as you can and choose a date some time before the due date.
Read every word in your card statements as soon as they arrive. Compare them to your previous statements.
Read, and re-read, the small print before clicking the button to send your application, including the privacy policy. It's worth understanding it and you might spot some well-hidden check boxes!
Always pay off your bill in full if you've gone for a reward or cashback card instead of a cheap introductory deal. If you can't do that, you have the wrong credit card.
Consider cashback cards instead of reward cards, since they are usually far more rewarding and more versatile to boot. Don't ever buy something just because you receive cashback or a reward somewhere, and always shop around.
If you feel a credit-card company is treating you unfairly, you can complain to the free Financial Ombudsman Service, who might force the company to compensate you. You lose nothing by trying. Read How to complain to the FOS

Airline credit cards: The low down

Jess Bown — 2013-03-07T07:00:00+00:00

Filed under: Credit Cards

Airlines including Virgin, British Airways and easyJet put their names to credit cards with which you can earn free flights to destinations all over the world - if you spend enough.

But would the rewards offered by these cards work for you? We investigate.

What are airline credit cards?
An airline credit card works a bit like a cashback credit card. However, instead of earning cash every time you spend, you earn miles or points that can be converted into air miles and put towards free flights.

The reward schemes available with these cards vary, but you could typically expect to spend £6000 to earn a free flight to Paris.

Most companies allow you to top up your miles with cash if you haven't saved up enough to reach your chosen destination.

However, not all flights are free. You often have to pay taxes and other charges on reward flights, so don't forget to check the small print.

Remember too that there is often limited availability and restrictions on reward flights, so you will get the most out of your airline credit card if you are able to be flexible about your travel dates, and that you will only have a limited period to redeem your points.

And last but certainly not least, only take out a card of this kind if you can clear the balance in full every month.

Which airlines offer credit cards?
British Airways, BMI, Easyjet, Flybe, Ryanair and Virgin all offer airline credit cards that allow you to collect miles as you spend.

The airline reward schemes may also allow you to add miles from other relevant reward schemes, such as the one offered with the Tesco Clubcard credit card.

Which are the best airline credit cards?
According to the comparison website MoneySupermarket, the best airline credit card on the market at the moment is the American Express British Airways Premium Plus card.

It offers automatic enrolment into the British Airways Executive Club as well as 18,000 Avios (air miles) if you spend £3,000 in the first three months - that's enough for two return flights to Paris.

There is, however, a hefty £150 annual fee to take into account, while anyone who fails to clear their balance in full each month will pay interest at 19.9%.

If £150 a year sounds a bit steep, you could also consider the Lloyds TSB Premier Duo Avios Credit Card, which allows you to collect Avios on almost all spending, plus double Avios on overseas purchases.

It is available with an annual fee of £50 and an interest rate of 13.95% or with no annual fee and a 17.95% interest rate.

For those keen to avoid an annual fee altogether, the Virgin Atlantic White card, with which you earn Virgin air miles, and the British Airways American Express card are also worth a look.

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Aqua Classic: rate on top card for bad credit borrowers to increase

lovemoney.com — 2013-02-28T05:06:00+00:00

Filed under: Credit Cards

The Aqua Classic is a market-leading card for borrowers with bad credit ratings. But time is running out if you want to get it at its cheapest.

One of the best credit cards tailored for borrowers with poor credit records is to be revamped on 4th March to offer a higher APR.
That leaves just a couple of days for borrowers to snap up the Aqua Classic MasterCard, which boasts no annual fee and comes with a representative APR of 29.7% for now. By next Tuesday that rate will jump to 32.9%

You get an initial credit limit of between £250 and £1,600. That may be increased after four months, if you've shown that you can manage your credit well.

The lowest APR

The Aqua Classic MasterCard offers the lowest APR available on cards for borrowers who have something of a patchy credit history. 29.7% seems a high interest rate, and compared to the best cards on the market, it is.

But it's par for the course for these cards to charge higher rates; it's how the providers cover themselves for taking the risk of lending to people who have a history of not paying back their debts in a timely way.

It's worth bearing in mind that these APRs are only representative - the rate is only offered to 51% of successful applicants. So if your credit record has a fair few black marks on it, you may be offered a higher rate.

Free credit ratings for life

Aqua has also just started offering borrowers free credit ratings for life thanks to its partnership with Noddle. You get free, unlimited access to your credit report, and your credit rating is updated monthly, so you'll soon start to see the benefit of using the card properly in your rating.

How it compares

The Aqua offers an interest rate only marginally better than its nearest competitor, the Aquis Visa from Vanquis Bank. This card comes with an APR of 29.8% - just 0.1% more than the Aqua Classic.

You start with a credit limit of up to £1,000. However, what I really like about the Aquis Visa card is that it regularly rewards you for managing your money properly. On your fourth statement you can get a credit limit increase, as you can every subsequent four months, up to a maximum of £3,000.

There's not a huge amount between the cards in my view.

The Barclaycard Initial Visa isn't far behind either, with a rate of 29.9%. This card is more for people with no credit history rather than one with a few black marks, though.

Cards that offer a little more

Up until fairly recently, the bad credit market was a fairly dry place, with the only variety coming in the different APRs on offer. Now though there's a little more innovation. In the last year we've seen cards that offer reducing APRs, 0% cards, even cards that pay cashback on your spending!

For example, I really like the idea of the Aqua Advance MasterCard, which gives you the chances to lower your rate by 5% a year for three years.

So you start with an APR of 34.9% and a credit limit of between £250 and £1,600. So long as you show that you can manage the credit responsibly, you can cut that rate down by 5% a year for the next three years, leaving you with a very competitive rate of 24.9%, not that far off what the best cards charge. I think it's a clever way of rewarding people who have struggled with credit in the past to keep on top of their repayments.

Sadly, the 0% and cashback cards have disappeared but I wouldn't bet against them reappearing sometime soon.

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One in five pay bills with credit card

Sarah Coles — 2013-02-20T11:55:00+00:00

Filed under: Credit Cards

Shocking new figures have revealed that one in five people have got into such a financial mess that they are paying at least one household bill with a credit card every month. Meanwhile, of those with a credit card or loan, 71% said they had been in debt for the entirety of the last five years.

So what is going on, and what can you do if you are in this position?

The survey, by discount website hushhush.com, also found that 64% of people have at least one unpaid credit card or loan. Even more worryingly, 17% of respondents admitted that they'd taken out payday loans in the past to pay household bills, whilst 28% also said that they frequently borrow from friends and family to pay for necessities such as groceries and regular bills.

Why?

It's hardly surprising. The Labour Party estimated that the average person has taken a pay cut of £1,200 since the election, through pay cuts and freezes, and those who lose their jobs and take a lower-paying one elsewhere. Meanwhile, Bacs says that household bills are up 40% over the last five years - so that 25% of people say they are unable to make the finances stack up.

Slippery slope

The trouble is that trying to solve the problem with credit is a slippery slope. These sorts of easy credit seem like a solution in the months when you can't quite make it to payday. However, once you have started to close the gap with credit, it's easy for that to spiral out of control, and because you're adding interest onto your costs, your money starts falling further and further short every month.

When asked if they knew what rate of interest they were paying on their credit card or loan debts, just 31% of people said they did. It means there's a good chance people are entering into very expensive arrangements to tide them over - which will only lead them into more and more trouble.

What can you do?

The solution will depend on how far down the track you have travelled. If you have built up a small amount of debt on your cards, you can switch it into lower interest forms of borrowing, cut up your cards, and draw up a severe budget which will enable you to pay it all back and start again.

Once you are back to zero you can look at the long-term lifestyle decisions you can make in order to cut your costs. If the shortfall is small you may be able to meet it by stopping subscriptions, removing certain luxuries for now, and shopping wisely and sensibly. If it is bigger, you may need a complete rethink about where you live and how you live, and whether you can afford your lifestyle.

If your problems are more severe you may need to set up a debt management plan. You should use a charity like Citizens Advice for this - you definitely should't be paying fees to a private company. They will be able to negotiate terms for you to repay the cash - and for interest to be stopped in the interim. It will affect your credit rating, but it will bring you back to zero.

In some cases things will have got even worse and you will need to look at an insolvency solution like an IVA or bankruptcy. These will not wipe away your problems instantly, but will enable you to break your debts down to something more manageable. There will be a long-term cost, but if things have got really bad it may be your best option.

The best place to start is to speak about your own situation with an expert. Mark Pearson, founder of HushHush.com, says: "The Citizens Advice Bureau can help people manage their spending better and negotiate with debtors on your behalf, so if you really can't see a way out, they might be a good place to begin."

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