|  With
a recent estimates showing that last
year £269 billion was spent by
using credit cards while £268
billion was spent in cash* it seems
that our plastic friend is more popular
than ever. However, whether you are
about to get a credit card – or
you’ve already got one - how do
you know that you’ve got the right
one for you?
Here’s
what you should consider when choosing
or changing your credit card.
First off, which card is best for you?
If
the card is used for ongoing borrowing,
and you intend paying off the minimum
amount only every month, then get one
with a low APR. While you think that
a 1 or 2% difference in interest rates
charged between cards is nothing, it
can really add up, meaning it will take
longer to clear the balance –
as well as wasting more money on interest.
As
interest rates are changing all the
time with credit card providers vying
to get your business, do regularly check
what other deals and products are available
to see if you could be paying less interest!
If
you already have a credit card with
a balance on it that you want to transfer,
look for a card that offers an interest
free period on balance transfers. However,
do check that you can still use the
card without incurring a penalty during
the interest free period or you could
end up with a nasty shock, like Mrs
H from Kent.
She
transferred a £700 balance from
one credit card to another with a different
provider. Mrs H also used the new card
for purchases, fully expecting to be
charged interest on any uncleared balance
from these new purchases. To her horror,
when her statement arrived, she found
she was also charged interest on the
amount she had transferred across –
in this case, the interest free period
was only valid as long as you didn’t
use the card afterwards! So do check
and double check that the any interest
free period is valid on the balance
even if you start using the new card.
If
interest rates are not a concern to
you as you pay off the full balance
at the end of the month, look for a
card that gives you additional benefits,
for example, double Airmiles, cashback,
or free insurance. Choose the one that
will give you benefits that you can
really take advantage of!
So
where do you find the best credit card?
Advertisements
for credit cards are here, there and
everywhere! Whether it is leaflets in
the post, in magazines, or adverts on
the TV and in your local high street
banks etc, it can be difficult knowing
where to look.
The
easiest way to keep up to date on what
new credit card offers and products
are available is by using the internet.
(For example, sites such as www.uk-credit-cards-online.com)
. Not only do many credit card websites
enable you to compare product offerings,
but you’ll be saving a lot of
time and legwork, you may find some
exclusive ‘web only’ deals
too!
*
Source: Apacs
|
If you are looking for a ‘phone number, go online
for directory enquiries. Since the advent
of ‘118’ numbers, the average
cost of a landline call to directory
enquiries has increased to around 50p
– nearly a third more than it
used to be in the good old days of ‘192’.
Groan, we
hate to be among the first to remind
you, but Christmas is just fourteen
weeks away! However, the canny ones
among us know that by planning ahead,
you can save money (and stress!) later
on so that, come Christmas day, not
only will you feel relaxed, but you’ll
be richer too!