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Credit Card Comparisons – Choosing The Best Deal
By: Joseph Kenny
With debt at an all time high, many of us will be looking to either transfer our
current credit card debt or apply for a new credit card with more benefits or
lower interest rate. However, with a plethora of card offers out there, deciding
which card, if any, is best for you can seem a little daunting
What follows are some useful tips and advice that hopefully will help your
decision making a little easier and clearer.
Loyalty/bonus cards
As people's circumstances vary so do the credit card deals on offer. If you
intend to clear your bill each month, the interest rate on your card becomes
irrelevant as you won't have to pay it. Therefore you should consider going for
a card that offers some form of loyalty bonus such as redeemable points, cash
back or air miles.
Interest-free offers
These cards are particularly useful for those don't clear their balance each
month. Shop around for cards that offer 0% interest on balance transfers and
purchases. The length of these offers tend to vary, so choose one that is
appropriate to you needs i.e. whether you intend to use the card mainly for
purchases or a balance transfer.
Some cards allow you up to 59 days to pay for purchases before being charged
interest on them, thus giving you some breathing space to pay for your goods
or/and services.
Special offers
One way to save money on your card debt is to take advantage of the many
debt-transfer offers available from most banks. These offers are usually
exclusive to new customers and allow you to pay off your debt from a more
expensive card at a lower rate for a limited period.
Cash
Although you can withdraw cash from ATM's with your credit card, it is best left
as a last resort as, although convenient, you will pay for the privilege through
a steep interest rate.
Plus points
Using the plastic to pay for expensive items such as jewellery, electrical goods
or goods bought online, gives you the piece of mind of consumer protection i.e.
under the Consumer Credit Act, the card company are liable (as is the seller of
said goods or services) if there is a breach of contract.
This is especially handy if the goods either arrive faulty/damaged or don't
arrive at all due to the supplier, for example, going bust. If any of these
scenarios were to arise, you should have the money spent redeemed to your credit
card.
Charges
Most cards will levy a charge against you if you fail to pay your monthly
repayment on time, with penalties usually around £20. You will also incur a
charge if you go over your set credit limit. Setting up a direct debit to make
your monthly payment will eliminate the possibility of being late with your
monthly payment and thus avoid that nasty charge.
What card then?
Deciding what credit card to apply for really depends on your personal
circumstances and requirements.
If, for example, you intend to do some serious short-term shopping, a card that
offers, say six month interest free on purchases, would be more suitable.
If you know in advance you will be unable to clear the balance in the short
term, then a card that offers a low rate for the lifetime of the balance, would
be suitable as you will save a great deal in interest payments compared with a
card that resorts to a higher rate after any offers expire.
If you are able to clear your balance each month, then going for a card that
offers rewards, such as cash back on purchases, would be most prudent.
About the Author:
Joseph Kenny is the webmaster of the UK credit card comparison site
http://www.creditcards121.com/, where you can find a selection of
credit card
articles. He also writes for the comparison site www.cardguide.co.uk which
offers some best credit cards in the UK.
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