Credit Cards Can Be Good for Improving Ratings
The Fair Investment Company has suggested that consumers may well benefit from the latest 0 per cent credit card transfer deals – particularly those who are seeking to improve a bad credit rating.
The company’s spokeswoman Rachael Mason said that as long as credit cards are used in a sensible way, then there is no harm in taking advantage of their convenience. This was especially said to be the case when it comes to repairing bad credit.
A poor credit rating is one of the main factors that stops people from getting the best deals on unsecured personal loans. Bad credit loans are available, as are payday loans, but of course the lowest interest rates on personal loans are only available to people with a good credit history.
Ms Mason said: “If you use these credit cards sensibly, there is no harm in taking advantage of some of the offers. They can be really useful for balance transfers – and large purchases.”
However, she did stress that – as with all borrowing – it was essential for customers not to borrow more than they could personally afford to repay, and to use credit cards for special purchases only. ”Many people see these cards as free money and start using them for everyday spending and find they are going over the 0 per cent period and being hit hard by high interest rates,” she said.
However, the expert did point out the need for consumers to not borrow too much money when using credit cards as part of their money management.
The Fair Investment Company’s advice follows a previous report by price comparison website moneysupermarket.com, which indicated greater competition in the credit card market, with a record number of interest-free promotional periods.
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