Credit card borrowers pay dearly for missed payments
Missing one credit card payment could mean a cost of £278 and significant damage to a credit record, moneysupermarket.com has found.
Research from moneysupermarket.com shows that 62% of credit cards which offer a 0% balance transfer will automatically revert back to a typical APR if just one payment is missed.
This could cost cardholders up to £278 in avoidable interest charges over the term of the introductory deal.
Rob Kenley, head of credit cards at moneysupermarket.com, said: “Those on a 0% balance transfer introductory period may not be aware of the severe penalties a single missed payment can result in.
“People also need to be aware that failing to make a repayment could have a negative effect on their credit profile. This could make obtaining credit for everything from mobile phone contracts to mortgages much harder.”