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Credit card surfing


 
           
     
 


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CREDIT CARD SURFING - HOW IT WORKS

The advantages and disadvantages of using a credit card

Using a credit card is can be a quick and simple way of buying things, but things can get out of hand as credit card providers usually charge a much higher APR (Annual Percentage Rate) than bank loans.

Is credit card surfing for me?
The credit card market is extremely competitive and many credit card providers offer low introductory rates for six months or longer.
If you have a problem repaying the balance after six months of having your card, receive solicitations for new credit cards in the post, and you are a methodical and organized person, credit card surfing may be a short term solution to your debt.

How to I surf credit cards?
You simply transferring the balance from your existing credit card to a ‘new' credit card which offers 0% APR on balance transfers for 6 months. When you do this, you save 6 months worth of interest. The snag is that you have to be highly organized as the process is tedious. You need to ensure that you apply for a new card just before the 6 months is up on the old credit card and transfer the balance.

The important thing is not to spend any more money on the credit card as the 0% interest is usually only offered on the transferred balance and not new purchases.

Low interest credit cards
Once you have run out of introductory offers such as 0% APR for six months, then look around for credit card providers who offer the lowest APR. There is no reason to say with your current provider if you can find one that offers a lower APR.

Short term fix only
Credit card surfing should be considered a short term fix only. If you have a debt that you cannot get rid of, you should seek advice from your bank on what to do.

The dangers of credit card surfing
Credit card surfing sounds very tempting, but BEWARE. You may be able to 'transfer' your debt a number of times, but eventually you will come across a road block were you cannot transfer anymore. If you have been using your credit card, you may have a huge debt piled up and you will be then be liable for the full APR charged by credit cards. Ideally you should pay off all outstanding debt before this happens. If you cannot meet the repayments, your credit score will be affected.

Consequences of a poor credit score.
What are the consequences of a bad credit score? You will be categorised as a high risk borrower and will have trouble taking out new credit cards or other loans such as bank loans or mortgages.

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