Credit Cards Information Guide

Jump to - Looking for a Credit Card : Credit Card Security Tips : Credit Card Summary

Credit cards are a finance product used to access a line of credit, allowing you to spend whenever you want. They provide flexibility and convenience, especially when you are away from home.

The major points used to sell you a Credit Card are:

• 0% on Balance Transfers for a limited period
• 0% on Purchases for a limited period
• Cash back or Loyalty Rewards like Nectar Points
• The lower the "Typical APR" the less interest you'll pay

Looking for a Credit Card

Choosing the right credit card can save you a lot of money, based on how you intend to use it and the rates charged. Deciding which credit card to carry is a matter of personal circumstance but points to consider are:

• Can you transfer a balance - usually at 0% interest for a limited period.
• What rates are charged - usually described as Typical APR's.
• Are there annual fees - a fee charged by the credit card provider for the privilege.
• Any charges for cash withdrawls - usually 2.5% of the withdrawn amount.
• What fees are there for foreign currency purchases.
• Do new purchases have an introduction rate - some have 0% interest for a limited period
• Is there an interest free period - this will be for a limited period.
• Any cash back or other freebies like loyalty points.
• Is it a affinity card supporting a charity - many charities now have credit cards.

Remember:

• You are charged interest on any outstanding balances. A cardholder is either billed by the issuer immediately for repayment of the credit used, or more commonly on a monthly instalment basis. Always pay at least the minimum amount due, this protects your credit rating, but this doesn't help clear balances.
• By only paying the minimum amount, you increase the time taken to repay any credit used, this results in increased interest being charged. Obviously, the more you pay off a credit card, the less interest is charged.
• Always read the terms and conditions when applying for a credit card so you understand what you are signing up for.

Credit Card Security Tips

A credit card is a plastic card bearing an account number, it can be used to purchase goods and services. Cash disbursements can be obtained on credit via cash machines by using a pin number. Advice for credit card usage regarding security is similar to any other consumer credit products,

• Always keep your pin secret.
• Never use a ATM that appears tampered with.
• Beware of fraud.
• When purchasing online ensure the sites secure.
• Never respond to emails after personal or card details.
• Contact issuers promptly upon card loss.
• Be aware of identity theft, shred bills before disposal.

Credit Card - The Summary

Finding the right credit card with a great rate can be more dependant on how you intend to use it, than the credit cards rate being low. You may already have a credit card with an outstanding balance upon it, and are looking to save on your monthly repayments by transferring.

Their are plenty of deals to turn your head offering 0% this and 0% that but first consider what you are looking for in a credit card: Low fees for making purchases in a foreign currency, 0% rate on balance transfers or Cash back or other freebies as incentives.