Credit
Card Benefits and Checklist
Points
to consider when applying for a Credit Card
There are two main reasons for wanting a Credit Card:
-
Ease of Spending
- A
way of Raising Money
There
is a huge range of offers and differences between of the credit
cards available.
They
can be sorted into the following categories:
- Range
of credit available, like How much, balance transfer, cheque guarantees.
- The
variations in Interest rates.
- A
Credit Card is an easy way of obtaining and spending money with
machines both home and abroad, and numerous shops and stores worldwide.
- Insurances
available to cover accidents when travelling, internet fraud,
warranties on goods bought, personal liability.
- Banking
services including fee levels, free currency, payment protection.
- Savings
on telephone, energy, memberships, flights, days out, shopping
points, flowers, purchases of all kinds.
- Gifts
when signing up to a new credit card or transfering from one credit
card account to another.
Note:
Credit cards are very convenient but it is important to keep track
of spending so it does not go beyond your means.
What
do you want from a Credit Card?.
- How
may days do you have before you have to pay your credit card statement?
( The best cards give you a maximum of 56 or even 59 days between
buying something and having to pay for it.)
- If
you do not pay the full amount, what is the interest charged?
- What,
if any, is the introductory offer? This could be a reduced interest
rate etc.
- Do
you get free purchase protection insurance, some credit card deals
offer this.
Tip:
Always keep an eye on the rates offered by other credit card companies
and do not hesitate to change credit card deals if the offer made
is to your financial advantage.
Tip:
You
pay a steeper interest for cash withdrawals on a credit card, check
first to see if a short term overdraft facility would be a better
choice
Tip:
Using your credit card to make large purchase of ( £100 on
one purchase) credit card companies are liable along with the seller
of goods or services in case of breach of contract. This means if
you do not get your goods you should be able to get your money back
from your credit card company. This is their legal obligation under
of section 75 of the Consumer Credit Act. But, please note, this
protection does not extent to Debit Cards.
List
of Major Credit Card Providers
OCIS
provide general financial information, we urge you to consult an
Independent
Financial Adviser ( IFA )
before making any important decisions about your finances. |
