| Credit Card
For a more detailed look at credit
cards visit the credit
cards 365 consumer information site.
Credit cards are a flexible and
easy way of obtaining credit and are offered by most if not
all major lenders. The most important thing to consider when
looking for a credit card is how you intent or expect to use
it. A great card for me might be a terrible one for you, check
out the best
credit card section of credit cards 365 for more information.
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Credit Card Types
Standard - Visa and MasterCard
are two of the common credit cards available.
Platinum and Gold cards – They have extra benefits
attached to them but are usually only available for people
with high levels of income.
Charity and Affinity Cards - these are just standard
credit cards except they a small percentage of what you spend
is donated to the charity your card is connected with.
Rates and Fees
Credit card companies make their money on either
interest rates or on the annual fee. These interest rates
tend to be high but can vary between companies. Modern credit
cards are flexible and can offer flexible rates and benefits,
such a no annual fee but a slightly higher interest rate.
So you need to think about what type of card and benefits
would best suit your circumstances. Other companies have penalty
payments for late or returned payments or if you exceed your
credit limit.
Repayment Plans
The majority of credit card companies insist
on you repaying the minimum repayment. This can be found on
your monthly statement. Alternatively, they request that you
repay a percentage of the outstanding balance, for example,
3-5%.
Credit Card Protection
Some companies offer 100 days protection against goods purchased.
This can include damage, loss or theft but you should see
what each company offers. It is advisable to memorise your
Personal Identification Number (PIN). Note also, the card
number, and issuers details and keep them separate from your
PIN. In the event of loss or theft you can therefore easily
contact the credit card company to "Stop" your card.
Protection is also offered from the company, by registering
your card with them. An annual fee is payable. In the event
of loss or theft, the company sorts matters out for you, providing
you with a replacement card. Some companies also offer insurance
against loss, theft or misuse of your card.
Credit Card Advantages
Credit cards are international and can be used
all over the World, wherever you see the logo on your card.
Credit cards can provide you with instant access to cash,
(for which there is usually a fee payable). Goods can be purchased
quickly and easily, in person, over the phone, or on-line!
Some companies offer insurance on your purchases, and can
protect your goods in the event of loss or theft. They can
also provide you with travel insurance.
Credit Card Disadvantages
Credit cards tend to be expensive and are hard
to control. It is advisable to keep your receipts of purchases
made. Mistakes do happen and you should cross check your receipts
with your monthly statement. Any discrepancies should be reported
immediately to the company. Other forms of borrowing can prove
cheaper, e.g. a personal loan or extension of your existing
mortgage. These options should be considered before applying
for a credit card. Purchases made abroad may not appear on
your statement for a few months and it is therefore difficult
to determine whether or not they have been debited to your
account.
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