Archive for March 18th, 2010
Uk Credit Card Tips & General Advice
As Christmas approaches, many of us in the UK will be considering taking out a new credit card to buys those all essential gifts. With a plethora of card offers out there, deciding which card,if any, is ideal for you can seem a tiny daunting
What follows are some useful tips and advice that hopefully will help make your decision a tiny easier and clearer.
Loyalty/Bonus Cards
As people’s circumstances vary so do the credit card deals on offer. If you intend to clear your bill apiece month, the interest rate on your card becomes irrelevant as you won’t have to pay it. Therefore you should think about going for a card that offers some form of loyalty bonus such as redeemable points, cashback or air miles.
Interest-Free Offers
These cards are particularly useful for those don’t clear their equilibrise apiece month. Shop around for cards that offer 0% interest on equilibrise transfers and purchases. The length of these offers tend to vary, so select one that is appropriate to you needs i. e whether you intend to use the card mainly for buys or a equilibrise transfer.
Some cards grant you up to 59 days to pay for buys before being charged interest on them, thus giving you some breathing space to pay for your goods or/and services.
Special Offers
One way to save money on your card debt is to take advantage of the many debt-transfer offers acquirable from most banks. These offers are usually exclusive to new customers and grant you to pay off your debt from a more costly card at a lower rate for a limited period.
Cash
Although you can withdraw cash from ATM’s with your credit card, it is ideal left as a last resort as, even though convenient, you will pay for the privillage through a steep interest rate.
Plus Points
Using the plastic to pay for costly items such as jewellery, electrical goods or goods purchased online, gives you the piece of mind of consumer endorsement i. e under the Consumer Credit Act, the card company are liable ( as is the seller of stated goods or services) if there is a breach of contract.
This is especially handy if the goods either arrive faulty/damaged or don’t arrive at all due to the supplier, for example, going bust. If any of these scenarios were to arise, you should have the money spent redeemed to your credit card.
Charges
Most cards will levvy a charge against you if you change to pay your monthly repayment on time, with penalties usually around £20. You will also incurr a charge if you go over your set credit limit. Setting up a direct debit to make your monthly payment will eliminate the possibility of being late with your monthly payment and thus refrain that nasty charge.
What Card Then?
Deciding what credit card to apply for really depends on your individualized circumstances and requirements.
If, for example, you intend to do some serious short-term shopping, a card that offers, state six month interest free on purchases, would be more suitable.
If you know in advance you wil be unable to clear the equilibrise in the short term, then a card that offers a low rate for the lifetime of the balance, would be suitable as you will save a graet deal in interest paymnets compared with a card that resorts to a higher rate after any offers expire.
If you are healthy to clear your equilibrise apiece month, then going for a card that offers rewards, such as cashback on purchases, would be most prudent.