Choose the Best Credit Card for you
With so many choices now available to the consumer the credit card
market is highly competitive. There are many great deals being offered,
such as zero interest rates on balance transfers and for purchases during
the initial first 6 months or even longer. It makes sense to consider
the advantages, drawbacks and legal protection that various different
credit card issuers can offer you. By making the right choice of credit
card you can enjoy using it as a shopping convenience with added extras,
instead of it becoming a financial millstone.
Credit Card Information
Changing to a low APR or zero APR Credit Card
It's easy to become burdened by the high interest credit card debts.
It is well worth considering changing your credit card provider for
a more advantageous deal. Most of the credit card providers offer low
or 0% interest when you transfer your credit card balance to them, and
also 0% interest on purchases made in the first 6 months (9 months with
some companies). This can give you a chance to pay off your debt much
quicker, and save you plenty of pounds.
Credit Card Choices
There are many different credit cards, but most cards belong to one
of six main payment-card systems:
Visa, MasterCard, Maestro, American Express, Diners Club and JCB International.
Before you apply for a credit card do check that they do not charge
an annual fee (most don't), and that there are no fees associated with
a balance transfer. The length of the period between being sent the
bill and having to pay can also differ with different companies, so
enquire before you fill in your credit card application.
Credit Card Savings
A low or zero interest rate for even a limited period can be a great
bonus, especially if you are struggling to keep up with the payments
and interest charges on your present credit card. It is important to
remember that the low interest is generally only set for a limited period,
so try to pay off the debt before you become subject to a high interest
monthly payment again. The main thing, even with 0% APR is to keep paying
off as much of the debt you can manage every month, don't be tempted
to opt for the minimum payment. The sooner you clear your credit card
debt the sooner your card becomes a useful shopping convenience, instead
of it being a financial burden. If you settle your statement in full
every month it should cost you nothing.
Credit Card Disadvantages
Beware of using your credit card for cash transactions, cheques or
foreign currency exchange as there are withdrawal fees, (typically 2.5%
or more of the amount). Also you do not get an interest-free period
for cash transactions, so getting cash with your credit card is to be
avoided.
It's not a good idea to have too many credit card contracts, as credit
rating agencies are able to monitor this and can also request reports
from credit card issuers on your payment history. If you have multi-credit
card debts it can have an adverse effect on your credit rating.
Credit Card Advantages
If you purchase goods or services costing between £100 and £30,000
with your credit card, Section 75 of the Consumer Credit Act brings
you an important legal right. If something goes wrong with your purchase
you can legally claim against your card provider. This connected lender
liability gives you legal protection when use your credit card, this
can be especially important when making a large purchase. However, it
is important to remember that you need to pay it off by the end of the
month to be financially wise!
Before selecting a credit card ensure you get all the available advantages
you can, as it is a very competitive market and there are lots of great
offers around, such as cashback bonuses, air miles and free travel and
purchase insurance. Choose your credit card carefully.
Credit Card Debt too High
Refinancing by incorporating all your debts into one loan - a Debt
Consolidation Loan - can reduce your monthly payments and enable
you to take control of your finances. There's no obligation, no catches,
no charges and the whole service is 100% confidential. Call us now on
0800 043 7474 or complete the enquiry form and one of our experienced
advisors will call you to discuss your requirements.
Loansite is a Limited
company based in Cardiff, UK.
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