Great Offers As UK Credit Card Providers Compete For Christmas Trade

With Christmas a mere few months away, a number of UK credit card issuers have announced special deals they’ll be offering new UK cardholders during the Christmas and New Year period.

Among some of the better offers that UK credit card issuers are offering to new customers signing up for their product include 0% interest rates on balance transfers, something many thought had seen its day since the crack down by the Office of Fair Trading had caused a squeeze on credit card issuers profits. Also on offer with this deal is 0% interest on new purchases with your new credit card, which should make your Christmas spending a little less expensive.

For those of you not particularly worried about 0% interest on balance transfers and new purchases over the Christmas period, some of the more extravagant promotional offers include a free Sony MP3 Walkman if you sign up for a Sony credit card during the promotional period.

While many may view most of the Christmas promotional offers being offered by UK credit card issuers as gimmicks, which they most certainly are, UK credit cardholders should make sure they read the terms of their credit card agreement very carefully. Most UK credit card issuers are currently charging upwards of 15% Annual Percentage Rate (APR) interest on outstanding credit card debit, which means that if you spending without carefully budgeting your spending you could well find that you are paying for your Christmas spending well into the New Year.

If you’re faced with the problem of high credit card debit in the New Year following a heavy Christmas spending spree, make sure you shop around and try and find a UK credit card issuer offering low APR and/or 0% interest on balance transfers. With Credit Action estimating that UK credit card debt is going to exceed £1.25 trillion before 2006, many foresee the recent trend of repayments in the UK credit card industry as a mere saving blip before the Holiday Season starts.

So, whenever you see UK credit card issuers offering nice gimmick giveaways if you sign up to become a customer of their services, always keep in mind that the money the UK credit card issuer earns from you not repaying your outstanding credit card debt in full each month far exceeds the cost of a few thousand MP3 players. So to ensure that you have a great Christmas and 2007, make sure you spend wisely on your UK credit card in the run up to the Holiday Season.

Richard Smith
3rd October 2006

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