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There are many credit cards in the UK at the moment, and with apr and interest rate offers continually changing, it is hard to keep up. Online credit card information is a good way to monitor the situation, but always be wary of financial claims on the net. Take financial advice from different advisors before you choose a credit provider. The big banks and brand name cards are often the safest option in the long run, with smaller credit card suppliers being more vulnerable to market fluctuations. They may change their interest rate suddenly, leaving you with not such a good deal as you thought. Also many are ruthless if you fall behind on payments, so watch out for the security you offered! If you are not planning to pay off the loan amount at the end of the month then the most important factor will be the interest rate or apr they charge. Many credit card providers offer introductory rates to attract new loan business. The introductory rate can be 0% and the period can range from a couple of months to a year. Check how long this introductory period last and if it is a period of time after you start using the card or at a fixed date. The difference is important, as they may take a month to issue your credit card, and then you find your 'fixed' date is only a few days away, before you start paying interest. Check what the introductory rate is precisely for, is it for transferred balances which you are moving from another debt or is it also for new purchases? Introductory low interest credit cards can be used for moving a debt from one card to the next, taking advantage of the low interest rate. This can be a very clever tactic. When this period is over, the 'usual' interest or apr rate will kick in. This could be a reasonable 8% or as much as 25%, so make sure you know exactly what will happen in the future, otherwise you could be landed with a high interest rate which you cannot pay off. Some cards offer interest free dates. Check to see if this applies from the date of purchase of an item, or from the beginning of a month. Cash withdrawals are normally charged at a higher interest rate and do not have a no apr period. Balance transfers are common, from one card to the next, if the interest rate is lower. Be sure to explain to the bank or credit provider that this is a balance transfer and ask if the low introductory rate applies. The Annual fee is often a forgotten cost, but can be significant in the overall cost of the card. Some credit cards don't have an annual fee, but offer a higher rate of interest charge. Do the sums and work out which is best for you. Some of the more established credit providers are Abbey National, Accucard, Alliance & Leicester and American Express. Barclaycard, Cahoot, Capital One, Citi and Createcard all are active in the UK. Online Egg Card services, First Direct, Goldfish credit card, Halifax credit, Marbles and Marks & Spencer offer good deals along with MBNA and Mint. Go to Credit loans in the UK for a collection of credit card sites. More Than, Morgan Stanley, Natwest, Royal Bank of Scotland and Sainsburys are good to look at, offering many interesting credit deals. Cheap loans can sometimes be found with Student Barclaycard, Tesco, Virgin, Student Barclaycard, Tesco and Virgin but rates vary so check them carefully, as with all providers of credit. |
