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Credit Cards Guide

Credit cards are a flexible and easy way of obtaining credit and are offered by most if not all major lenders. The most important thing to consider when looking to choose a credit card is how you intent or expect to use it.

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Credit Card Types

Standard - Visa and MasterCard are two of the common credit cards available. Platinum and Gold cards – They have extra benefits attached to them but are usually only available for people with high levels of income. Charity and Affinity Cards - these are just standard credit cards except they a small percentage of what you spend is donated to the charity your card is connected with. A great way to donate regularly (some leading charities have their own cards other are operated as a pool of charities).

Rates and Fees

Credit card companies make their money on either interest rates or on the annual fee.

Many however offer interest free periods whereby as long as you pay up before the payment due date you have no interest charges whatsoever , and some offer extended periods for credi card transfers .

Cashback On Credit Card Purchases

A number of leading card providers offer a fixed rate of cashback on every order you place with their card , although worth investigating they do tend to have slighly higher interest rate charges , so what is gained may be taken away .

When applying for a credit card there are a number of thirdy paty so-called cashback sites which will pay you for applying , the amount is not huge , typically £5-£10 but they are well worth a try , we can sign you up to our favourite , simply complete the form on this page, then you can apply to all the leading card providers American Express , Barclaycard etc.

These interest rates tend to be high but can vary between companies. Modern credit cards are flexible and can offer flexible rates and benefits, such as a no annual fee but a slightly higher interest rate. So you need to think about what type of card and benefits would best suit your circumstances. Other companies have penalty payments for late or returned payments or if you exceed your credit limit.

Repayment Plans

The majority of credit card companies insist on you repaying the minimum repayment. This can be found on your monthly statement. Alternatively, they request that you repay a percentage of the outstanding balance, for example, 3-5%.

Credit Card Protection

Some companies offer 100 days protection against goods purchased. This can include damage, loss or theft but you should see what each company offers. It is advisable to memorise your Personal Identification Number (PIN). Note also, the card number, and issuers details and keep them separate from your PIN. In the event of loss or theft you can therefore easily contact the credit card company to "Stop" your card. Protection is also offered from the company, by registering your card with them. An annual fee is payable. In the event of loss or theft, the company sorts matters out for you, providing you with a replacement card. Some companies also offer insurance against loss, theft or misuse of your card.

Credit Card Advantages

Credit cards are international and can be used all over the World, wherever you see the logo on your card. Credit cards can provide you with instant access to cash, (for which there is usually a fee payable). Goods can be purchased quickly and easily, in person, over the phone, or on-line! Some companies offer insurance on your purchases, and can protect your goods in the event of loss or theft. They can also provide you with travel insurance.

Also now with the widespread use of Chip and Pin , card fraud is very low for pay at sale transactions .

Credit Card Disadvantages

Credit cards tend to be expensive when you incurr penalties and are hard to control - being so easy to use is a benefit too , but unless you can control your shopping temptations they are perhaps to easy to over spend l. It is also advisable to keep your receipts of purchases made , especially large transactions . Mistakes do happen and you should cross check your receipts with your monthly statement. Any discrepancies should be reported immediately to the company. Other forms of borrowing can prove cheaper, e.g. a personal loan or extension of your existing mortgage. These options should be considered before applying for a credit card. Purchases made abroad may not appear on your statement for a few months and it is therefore difficult to determine whether or not they have been debited to your account.

Don't forget to file away your credit card statements , or if throwing out we recommend you shred them (like all bank documents) to prevent id fraud.

Where To Apply For A Credit Card

You could try the search box at the top of this page , enter keywords "credit card" or describe what you are after for some good online sources . For cashback on applying for a credit card you can find more details and get signed up here

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