Creditcard Account - What's Available
Sometimes it is just not possible to pay off the credit card account bill each month, and then it becomes two months... Before you know it you have a bill that will require some extra work to get it back under control. If you are prepared to do a bit of research you can make credit card accounts work for you rather than the other way round.
With access to the internet, you can find out what the best deals are on credit cards. Before you start looking though, it might be a good idea to think about what might be the best option for you.
For example, introductory offers of 0% interest for a set time are very tempting. Creditcard accounts offer this for different periods and for both balance transfers and new purchases. It is wise to check what the interest rate will be once the "free" period has finished and estimate whether you will be able to clear your debt within that period. If you are not likely to clear it, you might want to mark the date on the calendar and make sure that you apply for another card before you lose the 0% rate. This is known as "surfing" credit card accounts.
Having got the debt back under control, what separates some cards from others? This is quite personal and depends on what you are looking for:
APR or Annual Percentage Rate - this can vary quite dramatically and will make a big difference to how much you have to pay back each month.
Interest Free Period - Most cards charge interest from the date of the statement. Others calculate interest from the date of any transactions. The maximum in most cases is 56 days.
Cash Withdrawals - The interest rate is usually much higher than for purchases or transfers. This is the creditcard companies way of saying that they have to offer this option but that they don't want cards to be used for this.
Annual Fee - With so many cards on offer, there is no need to choose a card that requires you to pay a fee, unless that card offers benefits which outweigh the fee. Consumer Protection - Check whether a purchase has to be over a certain value to benefit from this option. Having the likes of Mastercard or Visa supporting you when things go wrong, or a supplier goes into liquidation, can make a difference in a dispute.
Travel Insurance - This is tempting but do you really want to pay for your holiday on your credit card? Travel insurance might be a valuable benefit if you commute to work or spend a lot on public transport. You need to check the small print first to see exactly what is covered and what isn't.
Cash Back - Some cards offer to give you back a percentage of the money you spend on all purchases, it won't be much, but if you are paying your bill in full each month, could be an incentive. At the end of the year the cash back that I get from my card is a welcome surprise.
Reward Schemes - This can range from air miles offered by the Air Miles card and some banks, to points offered by the large supermarkets which can be used against their goods or services.
Charitable Donations - The card issuer will give a small donation to the charity named on the card each time the card is used. This can be a painless way for you support charities.
Online fraud guarantee - This is becoming more popular as we shop for more goods online. The guarantee states that you will not be responsible for any debits on your account that you did not authorise.
Gold and Platinum Cards - These cards are only offered to people who are considered a good credit risk, earning at least £15,000 pa. They offer a higher credit limit and additional benefits such as extended warranties on household goods, medical insurance and hotel savings.
Style - Okay, you have been looking around at all the different credit cards and now can't choose between the final three for instance. To some style conscious, the design of the card is important and these days you can choose a card that may be clear or not even the standard rectangle shape.