Use our UK Finance guide and learn by experience. We outline pitfalls so that you don't have to learn the hard way, as many of us often do.
Credit Cards
Credit Cards
Almost everyone today is the proud owner of a credit card. It’s a small piece of plastic that comes in handy at the best of times. When managed properly, a credit card can be a useful tool when making small and large payments. Because your credit card is linked directly with a bank account, it saves you from having to carry cash around which is a safer option especially when travelling abroad.
0% APR Credit Cards are increasing in popularity because of the 0% apr rate.
Due to the amount of banks and merchants offering credit cards now, Low Interest Credit Cards have become sought after as banking institutions try to better the deal they offer in order to attract more clientele. A low interest credit card often comprises of a package deal that will either give you a 6 or 12 months interest free credit card or alternatively, a credit card with a long term lower interest rate. As interest rates go, credit cards have some of the highest rates so a low interest credit card is definitely worth researching.
Balance Transfer Credit Cards give you the ability to better manage the funds in your credit accounts.
Student Credit Cards have proven to many students to be a godsend of sorts. As a student, money is always tight and having a student credit cards for those end of the month cash emergencies can prove a vital tool. Its wise to note however, that as a student, its unlikely that you’ll have much of a credit history and you won’t have a large income. The requirements for student credit cards are different from those of a normal credit card and as such, you’re a greater risk to the Lender Company. Therefore you should be prepared to have a higher interest rate on your student credit card. This higher rate provides the needed compensation for the higher risk incurred by the Lender Company.
Cash Back Credit Cards are yet another marketing ploy by banking institutions to attract more clientele. Usually such ‘cash back credit cards’ involve a plan whereby you earn points on each purchase made on the card. Such points add up and you’re able to redeem them for amounts of cash which will be paid back in to your credit card. Essentially then Lender Companies who offer cash back credit cards are using a small amount of the interest rate they’re receiving from you and giving it back to you in the form of a cash back payment.
