Reno Charlton, award-winning writer, shares her financial expertise as a contributing columnist for Credit Card Comparison Online - compare credit cards, which offers a credit card guide and credit card frequently asked questions.
In a shocking recent report it was revealed that many credit card companies across the UK have decided to increase their rates, charges, and fees, with over one hundred and twenty five rises taking place in the last couple of months alone.
A number of factors have fuelled this decision, from bad debt levels and financial losses resulting from the cap on penalty charges to the effects of the credit crunch, which has left a trail of destruction and mayhem in the UK's financial sectors.
Credit card providers have hiked up charges in a number of different areas. Many have raised the transfer fees charged on 0% balance transfer cards, so you pay more to transfer your money from existing cards. Others have upped foreign currency fees, so you pay more when you use your card abroad. Some credit card providers have hiked up the charges for making cash withdrawals, so you pay more when you take money from a cash machine with your credit card. And some have simply raised the interest rate charged on the card, so you pay more interest on your outstanding balance.
With all of these rate, charge, and fee hikes it is probably time for many consumers to start looking at switching their credit cards to try and avoid the financial implications of these changes. Although the last couple of months have seen card providers push up their fees and charges, the world of credit cards is still a very competitive one, and there are still credit card providers out there that are able to offer a good deal depending on your needs and circumstances.
For example, if you have a credit card with an outstanding balance and your card provider has raised the interest rate by a significant amount, you could end up paying a fortune in charges. It may be a good idea, therefore, to try and transfer your balance onto a 0% balance transfer card by comparing deals and seeing which offers the lowest transfer fees. Alternatively, you may want to avoid paying these charges altogether and opt for a low interest life of balance transfer credit card.
It is more important than ever these days to make sure that you compare credit cards before you make a decision. You should also bear in mind that credit card providers are rejecting a higher number of applications these days, and if you end up being turned down you need to resist the temptation to apply for another card right away, as this could damage your credit. You should wait at least three months before you make another application after you have been turned down so that your credit rating does not take a battering.
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