IS IT THE END OF AN ERA FOR RATE TARTS?
London 14th August 2007 – Switching debt balances between 0% interest rate credit cards every six months has become a popular juggling act among consumers trying to consolidate and manage their debt. But, Equifax, the leading instant online credit information provider, is warning consumers that the deals are becoming harder to find and that lenders are becoming more selective about who gets the deals. This makes it even more crucial to have the best possible credit score if you want to continue being a ‘rate tart’.
“It’s crucial that consumers plan for the future and not just the short-term” says Neil Munroe, External Affairs Director, Equifax. “If you are unable to get a 0% deal, moving to a life of balance credit card where you will pay a lower APR rate until the balance is paid off, could help to reduce the amount of interest being added to debts.”
Lenders look at credit scores when considering applications and the best credit cards deals are offered to those with the best credit ratings. It’s therefore, important that consumers check their credit rating before applying for a new card. Equifax also advises that it’s best not to make multiple applications for credit in a short space of time because some lenders will see this as a risk of bad debt or a possible sign of ID fraud or theft.
If consumers are unable to move their balance to a cheaper rate, Equifax advises that it’s a good idea to try to pay off outstanding debts as quickly as possible. If the interest on a loan, for example, is higher than the interest being earned on money in a savings account, consumers should consider using some of their savings to clear their debts.
Munroe concludes, “Lenders are becoming more selective about who they offer 0% deals to. So it’s important that consumers have the best possible credit score for their circumstances so they don’t get caught out with a huge balance and nowhere to go”.
For further information or to obtain an instant copy of your credit report visit www.equifax.co.uk
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Notes to Editors
For further press information please contact: Claire Foster, Kate Clements or Wendy Harrison at HSL on 020 8977 9132 / Fax: 020 8977 5200 or Email claire@harrisonsadler.com
About Equifax
Equifax Inc. is a global leader in information technology that enables and secures global commerce with consumers and businesses. We are one of the largest sources of consumer and commercial data. Utilizing our databases, advanced analytics and proprietary enabling technology, we provide real-time answers for our customers. This innovative ability to transform information into intelligence is valued by customers across a wide range of industries and markets. Headquartered in Atlanta, Georgia, Equifax employs approximately 4,600 people in 13 countries throughout North America, Latin America and Europe. Equifax was founded 107 years ago, and today is a member of Standard & Poor’s (S&P) 500® Index. Our common stock is traded on the New York Stock Exchange under the symbol EFX. .
Equifax. Information That Empowers.
