What to look for when choosing a UK credit card company
Author: PaulHamilton Total views: 31 Word Count: 592
If you're in the process of choosing a UK credit card company to apply to, then you've probably been staggered at the amount and types of offers which are available. Making a choice can be a difficult task and it can be easy to become 'product-blind', being unable to distinguish between one offer and the next. Thanks to the vast range of offers, deals and perks, there has never been a better time to take advantage of a credit card. But what types of card are available and which one is the best for you?
Balance transfers allow you to save money on the interest you pay on existing credit card debts, by transferring them to a cheaper rate. These cards can offer you 0% interest rates on balance transfers or a 'no-fee for life' incentive - where charges are fixed at a lower rate than the standard APR used for purchases. This fixed rate lasts until the balance is cleared. In the past, some consumers have used 0% interest offers as a way to maintain an interest-free lifestyle, swapping frequently between cards. These days, lenders have clamped down on this practice by charging a transfer fee or refusing credit card applications if the customer has made too many applications in the past.
Cash-back cards allow you to reclaim a percentage of your expenditure. If you use your card regularly and pay off your balance every month, then you might want to consider the 'earn as you spend' advantages behind this type of card, as these small percentages can add up - especially if you are a regular user - and are then given to you either as a cheque or are paid directly into your account. Some cards give you a generous 5% cash-back for an introductory period, dropping to a standard 1% after that time.
Reward cards offer a similar deal to cash-back cards but in this case they offer bonuses for using them, rather than cash-back. For instance, a major Hotel chain has developed a credit card that rewards its users with points for hotel stays and travel. These cards are good for those people who fulfil the criteria for cash-back cards, but might have something specific to save for, rather than having cash deposited back to their account.
Charity cards are for the consumer who wants to 'give something back'. The founding companies associate themselves with certain charities and give a percentage to that organisation whenever the credit card is used, as well as an approval fee when you are authorised for credit. And if the choice wasn't enough already, you can even get Football Credit Cards! These cards share most of the features standard on any credit card, but with the added facility of making a small donation to your chosen club whenever you spend on it. It can be difficult choosing a UK credit card company, but you can be influenced by your spending behaviour, rewards and incentives - or even your favourite sports team!
Ultimately, choosing a card is a balancing act and one that requires a good deal of consideration and honesty in assessing your spending habits. For most consumers, the APR will have the biggest impact on their choice, with lifestyle choices coming in a second place. While balance transfers seem attractive, they really only delay the inevitable - that you will have to pay back what you have borrowed. Careful consumers ensure that they have a sensible repayment strategy in place before they even think about taking advantage of the incentives.
Article Source: Credit Card Bad Credit People
About the Author
Ed Milner continues to analyse the differences between UK credit card companies and what to consider when choosing your next card. As a UK Personal Finance writer he has an excellent understanding of which credit card is best for you.
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