These days, credit cards in the UK are competing with each other on two very attractive offers with a headline rate of 0%. These 0% credit cards will be either balance transfers; introductory purchases offers or a combination of the two. This article looks at how to get the best out these types of card and the things to that the credit card companies want you to do and therefore the things to avoid. There is a school of thought that believes that these types of card will soon be a thing of the past as they cost the credit card companies too much profit, as consumers get wiser to the pitfalls.A balance transfer credit card is basically an offer of either a zero interest rate or very low interest rate for a set period. The typical period is 6 months although there are variations on this and there have even been some low rates set for the lifetime of the balance. However, these are becoming rare. Once, the offer period expires then the outstanding balance reverts to the standard rate on purchases. This is very important, as at this point the credit card company will hope the consumer will not take any action and so the company can begin to earn money on the balance.A 0% purchase offer credit card has many similarities to the balance transfer offers. The introductory rate and period are usually 0% and 6 months in the same way as the balance transfer. Also, once the period expires the outstanding balance is subject to the standard rate on purchases. It is an important point to note that the introductory rate does not apply indefinitely on purchases made in the period, but only applies for the duration of the introductory period. It is often the case that credit card companies will offer both the balance transfer and 0% on purchases on the same card. When this is not the case it is wise to keep balance transfers and purchases separate. This is because the balance transfer portion of an outstanding balance will be paid off quicker than the standard rate purchases. Therefore an increasing portion of the balance will be subject to the standard rate and the balance transfer portion will decrease at a faster rate. There is nothing to stop a consumer obtaining a credit card with a balance transfer and a separate low interest credit card for any purchases to be made. That way the benefits of the offers are maximised.In summary the balance transfer and 0% purchase offers can be of great benefit to the consumer provided that the consumer understands how to use the offers to their advantage. A degree of discipline is required in managing repayments. Also, the cardholder should be aware of any penalties that may cause the offer to be cancelled. Armed with this knowledge then these cards can be made to work for the consumer, but remember that when comparing credit cards to pay close attention to the typical APR, which is, always stated where UK credit cards are promoted.
About the Author
Neil Brown has contributed to many financial sites including business banking and personal loans.
Fitch Places HSBC Private Label CCMNT (USA) I,
2002-1 & 2002-2 on Watch Positive
NEW YORK -- Fitch Ratings has placed four tranches of subordinate notes out of the HSBC Private Label Credit Card Master Note Trust I on Rating Watch Positive. The Rating Watch Positive designation affects approximately $983.95 million of credit card backed securities. The notes are backed by a pool of private label revolving credit card accounts originated by HSBC Bank Nevada, National Association, (formerly Household Bank (SB), N.A.).
The Rating Watch Positive designation results from the accumulation of cash in the principal funding account (PFA); as the PFA funds, a percentage of the bonds are backed by cash rather than receivables, which effectively reduces the exposure of the bonds to credit risk from charged-off receivables. The 2002-1 bonds were structured with a 12-month accumulation period and began funding the PFA in April 2006. As of Jan. 16, 2007, the PFA balance is $403.9 million. There is a reserve account of 0.5% set up to mitigate the risk of negative carry during the accumulation period. The expected maturity for the 2002-1 series is March 15, 2007.
The 2002-2 bonds were structured similarly to the 2002-1 bonds, with a 12-month accumulation period and a reserve account of 0.5% set up to mitigate the risk of negative carry during the accumulation period. Series 2002-2 began funding the PFA in April 2006. As of Jan. 16, 2007, the PFA balance is $416.1 million. The expected maturity for the 2002-2 series is March 15, 2007.
The 2002-2 bonds were structured similarly to the 2002-1 bonds, with a 12-month accumulation period and a reserve account of 0.5% set up to mitigate the risk of negative carry during the accumulation period. Series 2002-2 began funding the PFA in April 2006. As of Jan. 16, 2007, the PFA balance is $416.1 million. The expected maturity for the 2002-2 series is March 15, 2007.
Fitch will continue to closely monitor these transactions.
Credit enhancement for the 'AAA' rated class A notes is provided through subordination of classes B and C, and the excess collateral amount, totaling 22% for series 2002-1 and 24.5% for series 2002-2. The 'A' rated class B notes draw on the 11.5% subordination of class C and the excess collateral amount for series 2002-1, and the 13.5% subordination of class C and the excess collateral amount for series 2002-2. The 'BBB' rated class C notes receive credit enhancement from 5.5% of excess collateral for series 2002-1, and 5.75% of excess collateral for series 2002-1.
The ratings address the likelihood of investors receiving full and timely interest payments in accordance with the terms of the underlying documents and full repayment of principal by the legal final termination dates. They do not address the likelihood of principal repayment by the expected note payment dates.
Rating Actions:
HSBC Private Label Credit Card Master Note Trust I,
The ratings address the likelihood of investors receiving full and timely interest payments in accordance with the terms of the underlying documents and full repayment of principal by the legal final termination dates. They do not address the likelihood of principal repayment by the expected note payment dates.
Rating Actions:
HSBC Private Label Credit Card Master Note Trust I,
fixed-rate asset backed securities, series 2002-1:
--$400,000,000 class A notes affirmed at 'AAA';
--$53,850,000 class B notes 'A'; placed on Rating Watch Positive;
--$30,775,000 class C notes 'BBB'; placed on Rating Watch Positive.
HSBC Private Label Credit Card Master Note Trust I, floating-rate asset backed securities, series 2002-2:
--$400,000,000 class A notes affirmed at 'AAA';
--$58,275,000 class B notes 'A'; placed on Rating Watch Positive;
--$41,050,000 class C notes 'BBB'; placed on Rating Watch Positive.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
COPYRIGHT 2007 Business Wire
Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
--$53,850,000 class B notes 'A'; placed on Rating Watch Positive;
--$30,775,000 class C notes 'BBB'; placed on Rating Watch Positive.
HSBC Private Label Credit Card Master Note Trust I, floating-rate asset backed securities, series 2002-2:
--$400,000,000 class A notes affirmed at 'AAA';
--$58,275,000 class B notes 'A'; placed on Rating Watch Positive;
--$41,050,000 class C notes 'BBB'; placed on Rating Watch Positive.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
COPYRIGHT 2007 Business Wire
Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
All Major Credit Cards Accepted! Intuit's New Simplified Credit Card Processing Software Lets Millions of Businesses say ''Yes'' to Plastic
MOUNTAIN VIEW, Calif. -- Now small businesses can say "yes" to their customers more often. E[acute accent]Intuit Inc. (Nasdaq:INTU) today announced a new simplified credit card processing solution designed for the millions of small businesses that don't need a full accounting package or a high end merchant account service. The new QuickBooks(R) Credit Card Processing Kit, priced at $39.95, delivers breakthrough ease-of-use for small businesses that handle less than $5,000 in credit card transactions each month. E[acute accent]Previously, these small businesses had the difficult choice of buying a solution that over-served their simple needs, resulting in high set-up costs, monthly minimum fees and required credit card transactions, or the unpleasant option of saying "no" to customers wanting to pay with credit.
E[acute accent]Making Business Simple
E[acute accent]The Credit Card Processing Kit is another example of Intuit's effort to add simplicity to the company's entire product line. The product focuses exclusively on the essential credit card processing requirements these customers need -- ease-of-use, affordability and quick setup. E[acute accent]The kit helps small business owners turn their PCs into credit card terminals through a short and simple process. The kit includes everything a small business needs to accept Visa, MasterCard, American Express, Discover and Diner's Club credit cards, and signing up takes less than 10 minutes. There are no manuals to read, no long term contracts to sign, and small business owners are not stuck paying expensive monthly minimums. E[acute accent]With only a few weeks in the market, the QuickBooks Credit Card Processing Kit is a hit with small businesses. E[acute accent]"The QuickBooks Credit Card Processing Kit is exactly what I've been looking for!" said Beverly Stout, owner Stout Appraisal Services in Dayton, Ohio. "In the past, I had to say 'no' to clients who wanted to pay by credit card and in some cases, I lost the job. Now, I can give my clients the option to pay with a credit card at a price that fits my budget. And I've already been able to bring in new customers -- and income -- as a result."
E[acute accent]QuickBooks Right for Me Solutions
E[acute accent]The QuickBooks Credit Card Processing Kit is part of QuickBooks' complete array of Right for Me products and services. It works with or without QuickBooks financial software, giving small business owners the flexibility of a stand-alone credit card processing product and the ability to grow into QuickBooks as their business expands. E[acute accent]QuickBooks is the only product family that grows with small businesses from startup to mid-market, using the same platform and therefore eliminating the need for any data migration, changes to business workflows or new product training.
E[acute accent]Availability
E[acute accent]The QuickBooks Credit Card Processing Kit is available at retail stores including Office Depot, OfficeMax, CompUSA, Staples, Fry's, Best Buy for Business, Amazon.com and Samsclub.com. For more information visit www.creditcardprocessingkit.com.
E[acute accent]About Intuit Inc.
E[acute accent]Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses, consumers and accounting professionals. Its flagship products and services, including QuickBooks(R), Quicken(R) and TurboTax(R) software, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries(R) and Lacerte(R) are Intuit's leading tax preparation software suites for professional accountants. E[acute accent]Founded in 1983, Intuit had annual revenue of more than $2 billion in its fiscal year 2005. The company has nearly 7,000 employees with major offices in 13 states across the U.S. and offices in Canada and the United Kingdom. More information can be found at www.Intuit.com.
E[acute accent]Intuit, the Intuit logo, and QuickBooks, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries.
COPYRIGHT 2006 Business Wire
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
MOUNTAIN VIEW, Calif. -- Now small businesses can say "yes" to their customers more often. E[acute accent]Intuit Inc. (Nasdaq:INTU) today announced a new simplified credit card processing solution designed for the millions of small businesses that don't need a full accounting package or a high end merchant account service. The new QuickBooks(R) Credit Card Processing Kit, priced at $39.95, delivers breakthrough ease-of-use for small businesses that handle less than $5,000 in credit card transactions each month. E[acute accent]Previously, these small businesses had the difficult choice of buying a solution that over-served their simple needs, resulting in high set-up costs, monthly minimum fees and required credit card transactions, or the unpleasant option of saying "no" to customers wanting to pay with credit.
E[acute accent]Making Business Simple
E[acute accent]The Credit Card Processing Kit is another example of Intuit's effort to add simplicity to the company's entire product line. The product focuses exclusively on the essential credit card processing requirements these customers need -- ease-of-use, affordability and quick setup. E[acute accent]The kit helps small business owners turn their PCs into credit card terminals through a short and simple process. The kit includes everything a small business needs to accept Visa, MasterCard, American Express, Discover and Diner's Club credit cards, and signing up takes less than 10 minutes. There are no manuals to read, no long term contracts to sign, and small business owners are not stuck paying expensive monthly minimums. E[acute accent]With only a few weeks in the market, the QuickBooks Credit Card Processing Kit is a hit with small businesses. E[acute accent]"The QuickBooks Credit Card Processing Kit is exactly what I've been looking for!" said Beverly Stout, owner Stout Appraisal Services in Dayton, Ohio. "In the past, I had to say 'no' to clients who wanted to pay by credit card and in some cases, I lost the job. Now, I can give my clients the option to pay with a credit card at a price that fits my budget. And I've already been able to bring in new customers -- and income -- as a result."
E[acute accent]QuickBooks Right for Me Solutions
E[acute accent]The QuickBooks Credit Card Processing Kit is part of QuickBooks' complete array of Right for Me products and services. It works with or without QuickBooks financial software, giving small business owners the flexibility of a stand-alone credit card processing product and the ability to grow into QuickBooks as their business expands. E[acute accent]QuickBooks is the only product family that grows with small businesses from startup to mid-market, using the same platform and therefore eliminating the need for any data migration, changes to business workflows or new product training.
E[acute accent]Availability
E[acute accent]The QuickBooks Credit Card Processing Kit is available at retail stores including Office Depot, OfficeMax, CompUSA, Staples, Fry's, Best Buy for Business, Amazon.com and Samsclub.com. For more information visit www.creditcardprocessingkit.com.
E[acute accent]About Intuit Inc.
E[acute accent]Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses, consumers and accounting professionals. Its flagship products and services, including QuickBooks(R), Quicken(R) and TurboTax(R) software, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries(R) and Lacerte(R) are Intuit's leading tax preparation software suites for professional accountants. E[acute accent]Founded in 1983, Intuit had annual revenue of more than $2 billion in its fiscal year 2005. The company has nearly 7,000 employees with major offices in 13 states across the U.S. and offices in Canada and the United Kingdom. More information can be found at www.Intuit.com.
E[acute accent]Intuit, the Intuit logo, and QuickBooks, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries.
COPYRIGHT 2006 Business Wire
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
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