Finding the Best Credit Card Deals
If you are about to apply for your first credit card, or you are thinking about getting a new one; be sure to take a close look at the large choice of credit card deals that are always being offered. Almost every bank and building society offer credit card deals in the UK, and an online search will reveal the many options available. Credit card deals are offered to consumers as a way of enticing them to choose a specific type of credit card over competitors.
Zero Charge Credit Cards
A zero charge credit card might sound too good to be true, but they do actually exist. However you may find that the zero charge on these cards is only offered for a limited amount of time. Usually you will be able to use the card without being charged an annual fee. You might also see these cards advertised as "no annual fee cards". It is important that you inquire how long you will not be charged an annual fee when signing up for this kind of credit card deal.
Credit Card Reward Schemes
A credit card reward scheme is similar to a cash back credit card deal, but rather than receiving cash back on your purchases you are awarded points that you can later exchange for a gift. Common types of gifts offered include gadgets, discounts on travel, household appliances, and home furnishings. Because you receive points when you make a purchase, this makes you more likely to spend with your credit card rather than paying with cash; but you should make sure that you know how much each individual point is worth before opting into a credit card rewards scheme. You might find that although some companies offer some fabulous rewards, the number of points you need to accumulate to receive one is very high. A competing company might not have such attractive rewards, but they could be much easier to come by due to the lower number of points required. So just like with any other type of credit card scheme, it is always important to read the fine print before signing.
Credit Card Transfers
For the last few years, the whole world has faced a very poor economic climate, and this has left many people struggling to get by on a low income and burdened with debts. During hard times it is tempting to use credit cards to pay for necessities, but a common scenario is that many families and individuals are left struggling to clear their card debt. When this happens very often we can only pay the minimum amount every month, and this does not even address the overall amount owed, as we are just paying off monthly interest. If you find yourself in this situation, you can transfer the debt of your current credit card over to a new card, that offers you some interest-free months when you first transfer the balance. This gives you a chance to pay off some of the original debt and get back on your feet.
Before transferring your credit card debt, be sure you know all the details to ensure you are signing for the best possible offer.
Cash Back Credit Cards
A cash back credit card scheme offers a fixed amount of money paid back to you every time you make a purchase with your credit card. Typically this is up to a specified limit, or only on a prearranged type of purchase. It could be that you are offered 3% cash back every time you buy fuel for your car, or it might be that you get a percentage of cash back up to £500 every month on groceries. Some cards may offer you a cash back percentage on anything you buy, but up to a limit of only £2,500 for example.
A cash back credit card scheme is only beneficial to consumers who can pay off the outstanding balance on a monthly basis. If you cannot do this, the accumulated interest will probably amount to more than the money they pay back to you. For this reason it is very important that you do not overspend with a cash back card, thinking that it will bring you larger awards.