Related Categories: Consumer Finance, Interest Bearing Consumer Finance, Consumer Rental and Lease
Over the years, businesses and in particular lending institutions have discovered that the phrase “free” carries a very positive meaning to Australian consumers. So many of these companies have sought to incorporate free gifts, rewards and even financing in order to have more people try their services. One of the most attractive offers is the interest free consumer financing option that is now available with many credit card companies.
For many Australians, the idea of borrowing money with no interest rates has a considerable amount of appeal. However, just what is this type of financing and what kind of benefits and drawbacks are part of the program?
The interest free consumer finance program is generally a part of an introductory rate for obtaining a new credit card. For a pre-selected period of time, purchasing items and sometimes pulling cash from the card will incur no interest rates on payback. This means that if you spent $20 on an item, you only need to pay $20 back to your credit card company based on that purchase.
In some cases, this introductory rate may be used on transferred debt from another card, although that practice may fall under another type of program. In any event, a customer with one of these cards can enjoy interest free payments for a pre-selected period of time.
Other finance companies use a different approach to interest free financing such as direct debit repayments. These companies do not issue a credit card or any other type of charge card; instead they work on a revolving credit basis, similar to a Business Overdraft.
The initial advantages are considerable for Australian consumers who are looking to pay less on their credit cards. Most such programs will last for at least six months and up to 5 years in some cases which provides plenty of time to pay for items or pay down debt without worrying about an interest rate.
Plus, many of these plans allow you to pay out early without any penalty which means that you can pay off a considerable amount over that period of time and by the end suffer no additional fees or payments due based on the interest free period. When used wisely, this can be an excellent card to have in your possession.
However, one of the biggest disadvantages is that such cards will often have a higher than normal interest rate kick in once the free period is over. Add to this the additional fees and charges and you will have a card that is not as good as most low interest credit cards that have no such interest free period. Plus, there may be monthly payments and fees required for its use during the interest free time on your card as well.
Basically, the interest free consumer finance is a short term option designed to lure you into trying a particular credit card. This is basically for those who can transfer debt to the card and pay it off in the pre-selected period of time. Otherwise, the card is not really worth it in the long term for a consumer who has no accumulated debt. You will need to go over your own finances to see if this type of card will work for you.
Level 32, 580 George Street
Sydney, New South Wales 2000
Australia
The Hongkong and Shanghai Banking Corporation Limited is a Hong Kong based Company established in 1865. It is the founding member of the HSBC Group.
1 Commerce Street
Wauchope, New South Wales 2446
Australia
Holiday Coast Credit Union Ltd offers loans, insurance, saving accounts, credit card and financial planning.
27 Stewart Street
Wollongong, New South Wales 2500
Australia
Horizon Credit Union Ltd offers loans, insurances, saving accounts, financial planning and credit card.
599 Pacific Hwy
Ground Floor
St Leonards, New South Wales 2065
Australia
Intech Credit Union Limited - provides loans, insurances, saving accounts, credit card and financial planning .
52 Argyle Street
Camden, New South Wales 2570
Australia
MacArthur Credit Union Ltd - Offers loans, insurances, saving accounts and financial planning.
165 Brisbane Street
Dubbo, New South Wales 2830
Australia
Macquarie Credit Union Limited - Offers financial solutions such as loans, insurances, saving accounts and financial planning to its members.
11-21 Underwood Road
Units 9 & 10 Homebush Business Village
Homebush, New South Wales 2140
Australia
My Credit Union Limited offers loans, insurance, savings accounts, financial planning and superannuation.
481 Peel Street
Tamworth, New South Wales 2340
Australia
Northern Inland Credit Union Limited - Offers loans, insurances, saving accounts, credit cards and financial planning.
288 Summer Street
Orange, New South Wales 2800
Australia
Orange Credit Union Limited - Offers loans, insurances, saving accounts, financial planning and credit card.
191 O’Riordan St
Connect Corporate Centre, Level 8
Mascot, New South Wales 2020
Australia
Qudos Mutual Ltd - Offers loans, insurances, saving accounts, financial planning and superannuation.
Shop 44 Sunshine Plaza
324-328 Hampshire Road
Sunshine, Victoria 3020
Australia
Let us take the hassle out of your new home purchase,
25 Ferguson Street
Unit 6 Level 1
Albany Creek, Queensland 4035
Australia
North Brisbane Home Loans is an award winning mortgage
39 Montague Street
North Wollongong, New South Wales 2500
Australia
Easy Plan Financial Services is a Wollongong based financial
42 Barracks Flat Drive
Queanbeyan, New South Wales 2620
Australia
Provincial Home Loans is a Canberra – Queanbeyan based
24-26 Halifax Street
Adelaide, South Australia 5000
Australia
The experts at ABR Finance specialize in finding the best
60 Margaret Street
Level 33
Sydney, New South Wales 2000
Australia
Mizuho Bank Ltd. was formed in the year 2013, with the
(2909 Finance Enquiries since 08-02-2016 02:05PM)
222 High Street
Kew, Victoria 3101
Australia
BankMecu banking products include home loans, car loans,
(7036 Finance Enquiries since 04-05-2015 02:08PM)
39-41 York Street
Sydney, New South Wales 2000
Australia
Bank of China (Australia) Limited offers a number of deposit
(2855 Finance Enquiries since 12-06-2015 01:30PM)
2 Park St
Level 47
Sydney, New South Wales 2000
Australia
Operating since 1869, The Royal bank of Canada (RBC) is
(1538 Finance Enquiries since 09-04-2016 11:50AM)
363 George St
Suite 2503
Sydney, New South Wales 2000
Australia
Woori Bank is a Korean Bank, which has made its mark on the
(4349 Finance Enquiries since 06-04-2016 10:24AM)
Preparing for retirement is a challenging thing for most people. It’s so easy to get caught up in the present that you forget about your financial well-being in the future. The unfortunate thing is that most people do not spend enough time planning for retirement.
The forex market is the most active and liquid exchange platform in the world. Similar to the ASX, the forex market allows investors to trade security instruments; specifically, forex traders deal in fiat currency. this paper discusses profiting from currency exchange fluctuations in the Forex
Looking to cut inefficiencies in your business? Of course you are, or at least you should be. Cloud computing allows you to run your small business more efficiently while saving you time and money, read on to see how Cloud Computing can help your business boost it's output.