With the New Year now upon us many of us will have made New Year’s resolutions, and given the difficult financial year that most of us have experienced many of these resolutions will be centred around finances. Sorting out your finances at the start of the year can be very refreshing, as it gives you a fresh slate for the rest of the year and enables you to focus more on your finances.
Credit cards are one of the financial areas that many people will want to focus on in the New Year, and this is partly because many people will have given their credit cards a good bashing over the Christmas period and may have built up quite a balance on the cards.
Of course, not everyone will need to address credit card issues, as many people may be happy with their credit card and may be able to repay any debt in full within the interest free period. However, for those that do want to sort out their credit cards then it is important to start the search sooner rather than later, and it is also important to know what to look for.
If you have built up a hefty balance on your credit card over the Christmas period then you may want to consider transferring the balance onto a low interest or interest free credit card. If you think that you can repay the balance within a fixed period of time such as six or twelve months then you may find that the best option is a 0% balance transfer credit card, where you can transfer your balance and then avoid paying interest as long as the transferred balance is cleared within the interest free period.
If you feel that you may need more time to repay your transferred balance you may want to opt for a life of balance transfer card instead. These charge a very low rate of interest for the life of the transferred balance, which means that whilst you will not avoid paying interest altogether you will have more time to get the balance repaid, and this is a more flexible option if you don’t want to take any risks.
Even those that have credit cards that are clear may want to look at changing their credit card in the New Year. For example, if you tend to use your credit card regularly and repay the balance in full each month then you could benefit from a rewards based credit card. With these cards you receive rewards for spending on your credit card, but because you repay the balance in full you will never be charged any interest so it is a win win situation for you. The rewards available with these cards can vary and can include cash back, travel rewards, loyalty points, gift vouchers, and much more.
Although the credit card market, along with other financial sectors, is more restricted that it was in the past you can still get some good deals on credit cards if you have a decent credit rating, so make sure that you do some research and compare the different cards and providers available in order to get the best card for your needs.