Olympic tickets - could your credit card win you a gold medal?
With the 2012 Olympics less than 500 days away, anyone looking to apply for tickets needs to consider the best ways to fund their application. Purchases by credit or debit card will be restricted to Visa products, due to the exclusive sponsorship deal between the organisers and the credit card payment system. With the deadline for application submissions fast approaching, moneysupermarket.com, Britain's number one comparison site, urges consumers to get off to a sprint start in arranging their payment options.
Taking out a Visa credit card that offers zero per cent interest on purchases means anyone buying tickets could pay back the costs over a longer period of time whilst avoiding the steep interest associated with a traditional credit card. However, with less than a month to go before the deadline for ticket applications closes, anyone looking to take out a new product needs to leave at least two weeks grace for their card application to be processed and the new plastic to be received.
A family of four who have secured top rate tickets for the 100 meter final would have to fork out a whopping £2,900 - an unmanageable lump sum for most families. However, by paying for their tickets on the Barclaycard Platinum Visa card, offering zero per cent on purchases for 12 months they could stagger their payments over the course of the year and save themselves £462.31 in interest compared to a credit card at the market average APR of 18.28 per cent.
Kevin Mountford, head of banking at moneysupermarket.com said: "Unless you can easily afford to clear your credit card straight away, repaying your balance over an interest free period is the best and most cost effective way of accessing the Olympics. Whether they're heading to the 100 meter final costing hundreds of pounds or the handball preliminaries costing just £20, the ability to spread the cost of tickets is hugely valuable at a time when family finances are stretched, and could mean the difference between applying or not applying.
"However, when it comes to borrowing money, consumers must be extremely disciplined about payments and realistically plan their budget for repaying the amount they owe. Missing a payment or paying late can mean forfeiting the interest free benefits of the card and land the customer with a hefty bill, so setting up a direct debit to avoid missing the minimum repayment is a must. As always, the golden rule when taking out any sort of credit is not to borrow more than you can afford to pay back.
"For those who are unable to secure a traditional credit card, there are a number of pre-paid Visa products, such as Virgin Prepaid Card or VISA Prepaid Card that would allow them to purchase tickets through the online system. However, anyone going down this road needs to ensure they have sufficient funds on the card between the payment period of Tuesday 10th May and Friday 10th June 2011, as if their card is declined or rejected, their application may be withdrawn."