Credit
Cards
What
is a Credit Card?
Credit Cards are issued by financial institutions such as banks
and building societies as well as other organisations such as consumer
groups, supermarkets and charities. Specialist companies such as
Mastercard and Visa use their systems of complicated networks tof
making sure credit card payments are processed accordingly
When
you have a credit card, each month you recieve a statement of transactions
made using your card. Here are some important notes remember:
- There
is no interest charge ususally if you pay off the full sum on
the statement before the due date.
- There
is a minimum amount you are obliged to pay.
- The
amount you do not pay, you will be charge interest.
-
There is also a payment charge for late payments.
Gold and Platinum credit cards
Gold
and Platinum credit cards, once a status symbol of the1980's, no
longer have that 'air of importance' they once did. They usually
come with a larger annual fee in return they carry extra benefits
like preferential borrowing. If you are a frequent traveller, The
most important perk is usually free annual travel insurance, which
can make the deal worthwhile. You also need a minimum income requirement
to aquire a Gold Credit Card.
Tip:
To make full use of your Credit Card, make full use of the payment
time and, if possible pay off the full amount on your monthly Credit
Card statement, this can usually be done by Direct Debit.
Tip:
Make sure you read Points
to consider when applying for a Credit Card
before you make your choice.
OCIS
provide general financial information, we urge you to consult an
Independent
Financial Adviser ( IFA )
before making any important decisions about your finances. |
