Credit Cards Guide
Credit cards have become indispensable for most UK citizens today. This plastic money in the form of a credit card allows you to shop anytime and anywhere. Credit cards give you instant access to cash and are valid at most leading outlets in the world. Credit cards come with a host of other benefits like insurance on your purchases to protect your interests in an event of theft or damage, travel insurance and discounts. What is more, you can buy goods off-the-shelf, over the phone or online!
On the flipside, credit cards often prove to be more expensive. You tend to be extravagant when you do not have to produce ready cash.
The two most important parameters for choosing a credit card are- interest rate and repayment option. Interest rates tend to be high for most credit cards and vary from company to company. There are interest free periods and penalties for late payments and exceeding credit card limits. In addition to the interest, most companies charge an annual fee. It is always advisable to pay your credit card bills every month before the due date. Some companies may give you the option to repay a part of your outstanding balance.
While the options in the market may sound confusing, it is always in your best interest to take stock of all the available choices and schemes. Here is your guide to credit card shopping:
0% Purchase Rate: These offer you free credit for several months so that you can spend without being worried about the interest.
0% Balance Transfer: These help you transfer your outstanding balance from other credit cards to one card with an easier introductory rate. You can thus, pay off the balance quickly.
DIY Cards: These cards allow you to decide (and change!) your APR, cash backward reward scheme and other features of your card.
Best Reward Scheme: If you belong to the minority of disciplined UK citizens who pay their balance every month, you can take a credit card that rewards you with attractive benefits.
Tip: Choose your credit card after considering the interest rate, discount schemes, repayment options, and your spending habits.
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