Twelve month interest free deal from HSBC
One of the UK's leading banks, the HSBC, is now offering twelve months interest free credit on its MasterCard on purchases.
This will enable consumers to make purchases and spread the repayment without having to clock up any further interest. In order to qualify for the interest free period consumers must make their application either via the telephone or by visiting a branch of the bank.This interest free period will make the card a good value choice for those wishing to make purchases and spread the repayments. However, consumers are warned about transferring balances, as there could be a hefty fee of 2.5%, with a minimum charge of five pounds and no maximum charge.
On the purchase side, the interest rate will rise to 15.9% after the twelve month period, so consumers using the card are advised to ensure that they repay the balance within the interest free period to enjoy maximum benefits.
For those that make their application online the interest free period offered will only be three months with the HSBC, and this is through the bank's Gold card. The HSBC is one of a number of financial companies and banks that have been offering some good deals on interest free credit on purchases, with others such as Virgin and MBNA also offering longer interest free periods.
One spokesperson from Moneyfacts stated: 'Interest-free deals for purchases have been disappearing on credit cards or shortened to three months.'
Those looking to transfer their balance onto an HSBC card can enjoy a better balance transfer deal of 0% interest for twelve months on balance transfers via the Internet, but those planning to transfer larger balances should expect to pay high fees.
Tom Smith
11th May 2007
More Information:
- Credit Card Benefits
A credit card can be a highly effective and flexible financial tool for the smart shopper – and saver. It has many obvious advantages over cash and cheques – and a few hidden ones too!
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