Wise credit card users could gain from card trick

Credit cardholders could profit from an £8.5 billion bonus just by wise spending. Nine out of 50 card providers are currently offering 0% on purchase periods of 0-12 months, compared to an average of 3-6 months. According to moneysupermarket.com, UK householders could profit highly.

Credit cards with 0% are becoming increasingly popular and new research is showing how credit card holders can utilise their cards and benefit financially.

A spokesperson at moneysupermarket.com said that using a credit card with a 0% purchase offer and investing the equal amount of money in a current or savings account is an extreme case of banks paying us for our business. The way in which you get that cash is easy.

An average household in the UK spends £1,930 each month on items such as recreation, transport, clothing, food and drink. Based on an average credit limit of £6,000, a typical UK household can spend £1,930 for 3 months on the 0% purchase cards, invest the equal amount in a 6% plus current or savings account over the same period and profit £27 over a 12 month period and repaying the minimum amount back and clear it at the end of the offer period.

This method works on a similar principle to offset mortgages, the two thirds of people who can clear their balance every month signifies a good way of handling their finances.

Discuss this in the Finance Markets forums

Story link: Wise credit card users could gain from card trick