The global credit crunch, which still maintains its grip in the UK money markets, has made it very difficult for many consumers to get finance, such as loans, and with many facing an uphill struggle when it comes to keeping on top of financial commitments finances have become very tight. It is little wonder, therefore, that many consumers are very tempted when they get the chance to get their hands on some cash, and this is something that many credit card providers seem to be playing on.
According to a recent report a number of credit card firms are using the current financial situation to try and entice customers into taking out cash on their credit cards. Some have been contacting customers with tempting advertisements and have even increased withdrawal limits. However, what they do not make a big song and dance about is the fact that these cash withdrawals could end up costing the consumers a fortune in fees and interest.
Consumers are being urged to think very carefully before falling for these instant cash offers from credit card firms, as most will end up paying dearly in the long run. Even those that settle their credit card balances in full each month will have to pay the cash transaction fees that come with these withdrawals. One of the credit card providers that was recently accused of trying to entice customers into making costly cash withdrawals is Barclaycard.
Also, customers with the JJB Sports Mastercard recently received a letter and a credit card cheque with their name already filled in, trying to persuade them to use the cheque to top up their bank account – this would be charged at the same rate as a cash withdrawal.