Don’t miss out on the great Capital One Platinum credit card offer

Compareandsave.com want to alert credit card customers to the great 0% balance transfer and purchases offer currently running on the Capital One Platinum credit card.

At the beginning of June, Capital One launched one of the longest interest-free credit card offers the market has seen in a couple of years. However, consumers could miss out if they do not act on it soon.

The Capital One Platinum credit card is offering 0% on purchases and balance transfers until 1 September 2009. This means that those credit card customers who signed up for the card in the first week of June will definitely benefit from around15 months 0% APR on balances they have transferred from other cards and any new purchases they make.

However, we don’t know when this offer is going to end and it could be that the longer people wait to apply for this offer, the shorter the interest-free period they will receive. If someone applied for the card today they may only receive 14 months 0% on balance transfers and purchases.

A spokeswoman for compareandsave.com commented: “Over recent months, consumers have been crying out for a 0% offer of equal length on both balance transfers and purchases and Capital One has responded to them.

“With the credit crunch taking hold and the recent increases in fuel, food and energy prices, the Capital One Platinum credit card offer is set to save someone with the average credit card balance and the average APR around £300 in interest charges over the course of the interest-free period. This is a substantial amount at a time when consumers are having to tighten their belts.

“Shockingly, according to the British Bankers’ Association, as of April 2008, 73.0% of credit card balances are currently bearing interest charges so there are plenty of consumers out there who set to benefit from this offer,” she added.

Top ten tips for switching credit cards

It’s that time of year again. Christmas is done and dusted, the decorations need to come down and, oh yes, your credit card’s 0% interest rate on balance transfers and purchases is coming to an end.

Because of this, we thought we would give you our top tips on switching credit cards so that you get yourself the best deal out there.

1. Shop ‘til your rates drop

At this time of the year there will be plenty of deals offered to people in this situation. Credit card companies will fight hardest now to get your custom so interest free periods are likely to be long.

Our comparison table will help you to do this as it details all the best offers in one easy to use table.

Make sure you shop around and weigh up the pros and cons of each card. Check out customers’ credit card reviews here to help you make your decision.

Once you have made your decision, use our quick and easy switching service here to really speed things up.

2. Give the balance life

Fed up of switching at the end of countless balance transfers? Are you paying out more in transfer fees than on paying off the balance on your card?

If the answer to both of these questions is yes, then you might want to consider a ‘life of balance’ credit card.

If you transfer your balance to a life of balance credit card, you will be given a much lower APR which will last until you pay off the balance on the card in full. The APR is often at least half that of a standard card.

3. Don’t be a big spender

A common mistake made by those who transfer their credit card balance to a new credit card is that they then use the card on purchases.

If you do this, the credit card company will put your payments towards the balance with the lowest APR first. This means that the balance being charged at 0% APR will be paid off first and the purchases you make at, for example, 12.9% APR will be paid off last.

4. How low can you go?

A couple of years ago, credit card companies introduced balance transfer fees. Now, when you transfer your balance to another card, you are charged anywhere between 2% and 3% of the amount to be transferred (with a minimum fee of £5). This fee is then added on to your existing balance.

When you look for a card to transfer your balance to, bear this transfer fee figure in mind and work out how much it is going to cost you to transfer over your credit card balance. Make sure that this amount is less than the amount you are going to save on not paying interest for a year.

5. Say goodbye to your overdraft/loan

Are you currently paying interest on your overdraft? Or, do you have a small loan that you are paying interest on?

If the answer is yes to both of these questions then you too could benefit from getting a credit card with an interest free period. Of course, the amount you transfer would be subject to a balance transfer fee, but this may still work out cheaper than paying a full year’s interest on the overdraft or loan.

If you are going to get a credit card in these circumstances, bear in mind the amount of time you are likely to need to pay off the balance. Also, don’t get stuck in the trap of making minimum repayments, just because you can. Try to pay off as much of the balance on the card as you would have done if you were still being charged interest.

6. A million faces

When you are looking for a card to transfer to, bear in mind that one company may operate a number of cards. For example, MBNA run all of the football club credit cards, plus the Virgin card has been rebranded under the MBNA name. The RBS Group operate the NatWest, RBS and Mint credit cards.

Because of this, the operator may not allow you to balance transfer to another one of their cards as sometimes you are only allowed to have the interest free offer once. It is up to their discretion to allow you to do this.

7. When will it end?

Another thing to consider is when the new interest free period will end. Cards tend to come with interest free periods of around 12 months, although the range is between six and fifteen months.

Try to shop around for the longest interest period, but don’t allow this to become the only thing you compare across the board.

Consider the time of year when the 0% offer will end. Does this coincide with a time that is particularly expensive for you? Shop around for the best deal based on what suits you the most.

8. Memory of an elephant or a goldfish?

Be sure to set a reminder for when your interest free period ends. If you keep this date in mind, you will be better able to budget your repayments so that your balance is paid off in full by the end of the interest free period.

If you haven’t paid the balance off in full, the reminder will allow you to consider your options and sort your situation out before you get charged a lot of interest.

By this point, you will have had the card for a year and have built up a credit history with the company. If you have made your repayments on time, they will want to keep your custom. If you speak to them after the interest free period, they may offer you a lower APR on the remaining balance.

9. I promise to pay the bearer on demand the sum of...

The card you transfer to may have different repayment conditions than your previous card. Whereas your existing card stipulates that your minimum repayments must be 5% of the balance with a minimum repayment value of £5, the card you want to transfer to might say that you have to pay back a minimum of 10% a month. Check that you can afford the repayments before you transfer your balance.

10. Bye bye balance

Try your hardest to clear the balance in the interest free period. Work out the maximum you can honestly afford to repay each month and try to stick to it. As an incentive, match the extra you spend and put it in a savings account for that something special you really want.

Viral email scams

We have all had those emails arrive in our inbox claiming to be reports of some sort of scam that is going around. Sometimes, the emails themselves are the real scams and sometimes they are genuine. Either way, they will probably make you think about how you deal with the certain issue being highlighted.

Compare and Save would like to hear from you about any such money related scams so that we can report on the truthfulness of them for you.

Meanwhile, we had one come arrive in our inbox the other day detailing a “credit card scam”.

The email told of how someone will call you, saying that they are from VISA, to tell you that your card has been ‘flagged for an unusual purchase pattern’. They will be able to tell you your account details such as name, address, card number etc. The only piece of information they don’t have is your 3 digit security number on the back of the card that you use for purchases to prove that you have the card in your possession.

It continues saying that you then provide them with this information and then within minutes of putting the phone down, your card has been used for purchases of up to £500.

We wanted to confirm whether this was true or not, so we spoke to Visa Europe to find out.

“Our fraud experts have never seen an attempt to perpetrate this fraud in Europe,” a spokesman for Visa Europe said.

Visa Europe also took the opportunity to remind customers of how they deal with such scams if they do arise.

“Visa Europe takes all criminal scams extremely seriously. We work closely with law enforcement agencies across Europe and provide cardholders with advice to ensure they do not fall victim to such attacks.”

Additionally they sent a reminder to cardholders saying: “they will never receive an unsolicited request from Visa for personal information or account and security data such as their CVV2 (the three digit security code on the back of their card). If a cardholder receives such a call they should not reply and instead should inform their issuing bank.”

If you have received the above email, we hope this information helps to clear up the issues that have arisen from it. If you have any further questions, we recommend that you speak to your bank for advice on keeping your information secure.

It is also advisable to be aware of what information your bank will require when they contact you so that you will be better able to recognise any fraudulent attempts to obtain your personal details.

 

For the best deals of Visa Credit Cards visit www.compareandsave.com