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Tesco 0% interest card!

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A new credit card has been introduced by Tesco, which allows customers to transfer their debts to this card without any fees and interest for a whole year. 0% interest also allows customers to purchase goods from the store and online within the 12 month period without any interest. Alongside all these features, clubcard points will also be added whenever a purchase is made with the new credit card.

The Tesco Clubcard With No Balance Transfer Fee is rather unique as no other card in the financial market allows 0% and no fee for a whole year. Clubcard points are common with customers who shop regularly at the store, using the credit card will benefit those who have frequent visits to Tescos as every £4 spent on Tesco petrol will allow 5 extra clubcard points as well as one point for every £4 spent elsewhere within Tesco.

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As mentioned, the new card is one of its kind in terms of its features. For customers who want more than 12 months 0% interest, a different package is available which allows 16 months without any interest as well as 9 months 0% purchases for a fee of 2.9%. The new card can seem beneficial for those who wish to transfer their debts onto the card in order to prevent the build-up of debt or to simply slow the growth of interest.

Using this new card can be ideal for those who wish to take advantage of what it offers, what should be noted however is that any payments due should be paid off within the 12 month period, as anything which exceeds the time limit specified at agreement will incur interest charges. The rates of interest are usually quite high for such cards. Missed payments can also affect individual credit scores. Although there are several different cards offering different rates, not all are suitable for everyone, therefore it is best to find a deal which is appropriate for each person’s situation.

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Mis-sold PPI on your Credit Card?

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If you are currently holding a mortgage, car loan, or credit card under your name, there is great chance that you have been mis-sold Payment Protection Insurance.

It was only until recently that the terms and conditions of selling PPI policy’s changed. Originally, PPI was sold at the same time borrowers take out a loan. The function of PPI has always been to protect customers by covering monthly payments in the event that a borrower falls ill or is rendered as unable to work due to injury, disability, or loss of employment.

Unfortunately, most PPI policies did not live up to its guarantee of keeping loan payments current during times of dire need. Personnel from lending institutions failed in explaining the capacity, functions, and full extent of PPI, including the exclusions or exceptions which may render a borrower unfit to get its benefits. For instance, freelance or those who tagged themselves as self-employed or borrowers who suffer from preexisting medical conditions are denied PPI benefits, which in turn resulted in mortgage, car loans, and credit cards defaults not being covered they way they should have been. Obviously, the policies were sold to certain groups of borrowers who were ineligible for cover in the first place.

If you belong to any of these groups, or have noticed some vague terms and conditions under your contract agreement, you are most likely a victim of mis-sold PPI.

Re-check your agreement with a lender. Assess the terms and conditions and if the following words appear in your contract, there is a big chance you have been mis-sold PPI:

–          ASU

–          Loan care

–          Loan protections

–          Payment cover

–          Protection plan

You may or may not find these words on your agreement, but if you think it is likely to be a case of mis-sold PPI verify this by seeking the help of a claims management company such as PPI Claims Advice Line. You will receive the information and help you need in order to get the compensation you deserve for the mis-selling by the banks. Further information on claiming back PPI on credit cards can be found on here.

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Credit card spending can pay for your flights

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Holidays are on the wish list for many, however saving up for one may not be possible for all with mortgages, insurances, bills and other household expenses. Now however, spending money can entitle you to a free holiday. Many reward credit cards now allow customers to earn points totalling up to a free holiday. Although taxes, fees and surcharges are not included in the points, paying a minimum fee would bring a smile to several faces.

Such reward cards are part of the Avios rewards programme, replaced by the former Airmiles and BA Miles. From having just 9,000 Avios, the reward system can pay for a return UK/Western Europe flight. Although a minimum of £30 per person may need to be added on top for other exclusive fees, a holiday may not seem so far off.

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At Lloyds, Duo Avios Reward Credit Cards are available to customers who can earn Avios as they use credit. Customers applying for this will receive two cards, an American Express and a Mastercard. For every £5 spent using the Mastercard, and every £1 spent on the American Express, customers will receive one Avios. Customers spending £500 in the first three months will have a total of 15,000 Avios which is enough to secure a return flight to Western Europe.

The duo reward credit card is available to customers who are aged above 18 and residents of the UK. Customers must be employed and not have any County Court judgements or bankruptcy history within the past 6 years. The cards provided through Lloyds are great for collecting Avios on almost all purchases; spending money abroad allows double Avios!

This brilliant reward system is one not be missed out on. Saving money for a holiday had never been easier. Whether it’s an exotic holiday you are after or something just to get away, the Avios programme caters for all. The amount of Avios will however determine which destination is available.

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Amazon Launch their own Reward Credit Card

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Online retail giant Amazon who were previously unheard of for financial services have now launched their own credit card in partnership with MBNA. The financial product is aimed at regular users of Amazon.co.uk as they will benefit most from the perks offered by the scheme.

Amazon’s credit card provides the benefit of a loyalty card for regular users of the online retailer. By signing up to the scheme customers will automatically be awarded a gift voucher which provides you with a £5 discount from your following Amazon.co.uk buy. The credit card will thereafter reward users by giving them two Loyalty Points on each £1 spent online at Amazon.co.uk and will further reward customers with half the Loyalty Points for purchases elsewhere. Customers who have collected 1,000 points will automatically be rewarded with an Amazon.co.uk voucher worth £10 redeemable online.

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On the financial side of the bargain users of the Amazon credit card will enjoy 0% interest on purchases of single goods valued upwards of £300 for the first 13 months starting from the time the account has been opened. This offer is subject to the purchase being made within 30 days from the day when the account was opened. For those other purchases which are not from Amazon.co.uk a 16.9% RAP will be applicable.

The Amazon credit card appears to be more beneficial for a frequent user of the online retail service who would repay the outstanding balance monthly. However, for shoppers who do not primarily use Amazon.co.uk the perks appear to be minimal and there may be better alternatives out there.

The credit card will be monitored by the watchful eye of the Financial Conduct Authority (FCA) which means that if customers suffer a loss through lost or stolen goods purchased with the card they can claim against the card provider and be awarded a refund. The amount which can be claimed however is capped at £30,000. Applying for the Amazon credit card is simple as the process is online at Amazon.co.uk saving consumers from having to call or physically appear at a bank branch.

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Tips to avoid unrewarding credit cards

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Reward credit cards are usually offered to customers with excellent credit histories. The idea behind reward credit cards is to encourage you, as a customer, to spend. This may be spending in general on your credit card, or spending your money with particular business partners your credit provider has a relationship with. Rewards can take the form of cash, gift cards, air miles or even hotel stays.  Reward schemes can be an important factor when choosing one card over another. Savvy consumers, can take advantage of such reward schemes and enjoy the benefits.

Reward credit cards tend to be associated with higher annual percentage interest rates and higher fees. Before choosing a reward credit card, consider: will the value of the rewards outweigh the extra costs associated with such a card? In some cases, it may be better decision to have a standard credit card with overall lower fees and rates of interest.

Cash back rewards are by far the simplest. It is pretty straight forward. You receive cash for spending a certain proportion on your credit card. Although cash back may not deduct the balance on your account, it’s still money! You can use it on whatever you like.

It is always important to weigh up the cost and benefit of reward credit card schemes. Some may not be as rewarding as they first seem. Use the following tips to avoid unrewarding credit cards:

  • Be wary of limited rewards.  A good reward credit card is one that increases reward as you increase the amount of money you spend. A limit on how many rewards you can incur is clearly not to your advantage. This is a restriction to stay clear off.
  • Be aware of when your reward will expire. Will you have a reasonable amount of time to use your reward before it expires?
  • How easy is it to redeem your reward? For example, if it is a free hotel stay, how accessible and affordable is it to get to the hotel destination?
  • How much money you are required to spend before you can start earning rewards?
  • Don’t spend on things you usually wouldn’t to chase rewards! This can lead to unmanageable debt.
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