Credit Cards

Credit cards are useful for the following reasons:-

1) You do not have to carry large amounts of cash around

2) You can use a credit card to buy things from internet sites

3) You can use it abroad meaning you don't need so much foreign currency

4) Paying by credit card means that you can pay for things over several months, iit's effectively another type of loan, meaning that it can be useful in an emergency, for example to pay for a house or car repair.

The 2 main credit card issuers in the UK are VISA and Mastercard

Things to consider when choosing your credit card :-

Annual Percentage Rate (often known as APR) - This is the rate of interest that you will be charged on any balance outstanding when you have made your monthly card payment.

Special Introductory Rate - Sometimes when you take out a new credit card, the issuer may offer a low or 0% interest rate on card balances that you transfer to your new card.

Interest Free Period - There is usually no interest free period for cash withdrawals. However, when you pay for goods and services you may get up to 56 days interest free before you have to start paying interest.

Cashback and rewards - Some credit cards offer you incentives to take their credit card such as giving you money back or offering rewards, for example air miles or nectar points etc.

Minimum Card Repayment - All credit card issuers give you the option to either pay off your balance in full each month or to make a minimum payment where you'll be charged interest on any outstanding balance.

Annual Credit Card Fee - Some, but not all issuers charge an annual fee for using the card.

Late Payments - If your payment is late, there will be an extra charge, as well as the interest owed. This charge could be more than the amount you owe so be very careful to check what the charge is, and to ensure that all your payments are made on time.

Exceeding Your Credit Limit - Some card issuers will decline your card at the time when you are paying for goods or services, while others may just charge a fee if you go over your agreed limit by a small amount.

It is possible to get a credit card if you have had adverse credit but you need to check each card.