Credit Card Are Very Helpful And Make Great Short Term Loans
Credit Cards are a great way to help repair a bad credit rating. By just having a credit card and paying the monthly minimum on time, this will help repair your credit rating. The companies will see that you are not a risky person to lend money to. Most times a bad credit rating is created by not paying off a bill. It could be a small amount but that company want their money and they are willing to ruin your credit to get it back. It is for this reason why paying back your bills, loans or credit is most important. Credit Cards companies are actually in many ways a loan company. They let you spend money you don’t have and then pay it back at a small interest rate. This facility is very handy and can be a real help if you are falling short of cash for a few days. The interest rate on a credit card is much lower than many payday loans and if you are purchasing an item you are sometimes insured by the credit card company. This is a great additional bonus to having a credit card.
While you’re at university a student credit cards can be very useful. A student credit card can be a good way of paying for things, your get 56 days to pay off whatever you spend on it before you have to pay any interest. On top of this these credit cards have a low credit limit so that you cannot get into must debt. Some student credit cards come with exclusive discounts which can help you to save money. Also by using a credit card instead of a debit card you get protected, so if you buy something that costs over £100 on your credit card and something goes wrong, the credit card provider will be able to give you a refund. If you use the credit card sensibly then it can help you get into good payment habits and build up a good credit rating for when you leave University.
However there are some disadvantages of using a student credit card. Firstly after the initial interest-free period, you have to pay off a set minimum amount and start paying interest on the rest of your balance and this really builds up and gets expensive. Moreover student credit cards do not cone with the 0% deals on purchases or balance transfers you get with standard credit cards, so they are not a good idea for borrowing in the longer term. And another drawback is the monthly minimum repayments on student credit cards are usually higher than those of standard credit cards.
Credit cards are issued by credit card providers. When you are accepted for a credit card you will be given a credit limit and in many ways this is a form of borrowing. This limit, set by the provider, is the total amount you have available to spend with the card. Please note that this credit limit is subject to change at any time. Credit cards are an easy way of financing purchases and they can be used to buy goods in shops, restaurants, over the phone and online. You can also withdraw money from cash machines, and this is known as a ‘cash advance’. The main advantage of a credit card is that you can make purchases without necessarily having the money to do so because you can spread the cost over a period of time.
You can use your credit card at home or aboard with worldwide acceptance. They are a more convenient, not to mention safer alternative to carrying around large amounts of cash. Additional security also comes with the chip and pin device as well as the benefit of protection when you make purchases. Purchase protection covers goods paid for with the card against loss, theft or accidental damage.
When applying for a credit card your application will be based upon a number of aspects. In general you have to be at least 18 years old but you should always check the eligibility criteria. The most important aspect that providers will look at is your credit history. Generally, the better your credit history, the more likely you are to be accepted for a credit card and the more credit you will be given. You will also find that if you have a poor financial past you will be offered higher interest rates.
Most banks permit the application for a credit card to be completed online. You will be given a choice of ways to manage your account, either by phone, at a branch or online. Online banking is a really useful tool because you can get up to date balances, view transactions online and make payments easily. Some cards also come with free email and text alerts which are reminders of your balance and when payments are due. This will help you budget and manage your money.
Every customer is different and will have specific requirements. As such there are many different types of credit card available in the UK. Because all credit card providers will vary slightly, it is worth taking the time to find the one that best suits you. This will also alert you to some great introductory offers, but make sure you are aware of what happens when this period ends. Comparing credit cards online is a really useful way of weighing up the main features and pros and cons of different cards.
Each month your card issuer will send you a statement detailing all the transactions you have made as well as the minimum amount you must pay and the date this must be paid by. You have to make sure you pay off at least the minimum amount on the card statement each month. If you do not pay off your balance each month, you will be charged interest on the amount remaining in your account. The rate of interest, indicated by the APR or Annual Percentage Rate can be very high. If you fail to meet the terms of the card and make the payments on time this will be added to the balance on your credit card and you could be faced with having to pay interest on the late payment fee. To avoid this happening set up a direct debt that will always pay the minimum amount.
You should also watch out for hidden charges with credit cards. Some providers may charge you an application fee for issuing the card. Many cards also come with an annual fee which you have to pay simply for having the card. Lastly you may be charged for withdrawing money from cash machines so bear this in mind when comparing products.
If you are at university then you are just beginning your life away from home. Whilst being a student is an exciting time you will unfortunately have to think about money. Being a student can be expensive, you will have to think about accommodation and travel costs, books and equipment, not to mention general day to day living expenses. Students will find it difficult to acquire a standard credit card. This is because students are unlikely to have any credit history and credit card lenders only grant credit cards to those with a credit history. So what are your options?
Student credit cards are designed especially for students and the way they live their lives. These cards come with certain features exclusively for students. Some student credit cards have some great benefits such as no annual fee or an interest free period every month but this may depend on whether you pay your balance in full and on time. However, many cards come with Direct Debit which makes payments easy and means you will never miss a payment or be charged a late fee.
These cards are a great way to start your financial life and will help you to build up a good credit report. A good credit history will really help you in the future because it is used by banks and lenders when considering you for a loan or credit card. A bad credit report can really stand in your way when applying for financial products and services. Also as you begin to use the student card and use it properly, making payments in full and on time, proves that you are good at managing your finances, therefore you are likely to be offered a better APR and a higher credit limit. Student credit cards can be used to educate yourself about credit and how best to manage your finances. As long as these cards are used correctly you will be in better financial standing when you finish your education.
As many students have no credit history lenders have no way of knowing whether you are reliable and will meet your financial commitments and your bills on time. As such, students are considered to be more of a risk, particularly as they are unlikely to have the security of a regular salaried income. With a student card there is usually a lower minimum income requirement. Students can get a credit card but again as you are considered to be more of a risk, the APR on the card is likely to be higher and the credit limit is likely to be significantly lower than with standard credit cards. However, a lower credit limit should help you keep your spending under control.
Please remember that student credit cards are still credit cards. If you do not use them correctly you will receive fines and you could damage your credit report. You shouldn’t use these cards as an easy way of borrowing money if you have spent your loan or maxed out your overdraft. Always remember to use the credit you are given wisely.
Whether you are just starting out or you are already an established business you might want to think about obtaining a business credit card. Regardless of the size of your business these cards are a great way to manage your corporate finances more effectively because you can stay in better control of your business expenditure and see all your monthly outgoings. They will also help you separate your business expenses from your personal ones.
When deciding on the right card for you and your business some cards come with some great additional benefits such as discounts on travel, hotel visits and offers on travel insurance. You can also get business credit cards that allow multiple cards for several employees. Furthermore, some cards offer cash back programmes and reward offers.
Please note that when applying for business credit cards you may be required to provide some documentation regarding your business. When deciding on which business card to apply for, pick the card that is most suitable for the size of your business.
Reward credit cards work exactly the same as traditional credit cards but the providers offer incentives just for using them. You don’t have to change the way you spend but can earn rewards just for spending. By using the card you collect points which you can exchange for discounts, gift vouchers and even flights. These are some great benefits of these cards which can help you make your money go further.
It is important that you consider how and where you are going to use the card before you apply particularly as there are a large variety of specific reward programmes to choose from. Always check to see what the rewards are as they will only be right for you if you use them. The right card for you will depend on your lifestyle and what sort of rewards you want.
These cards encourage you to spend so that you can reap the rewards because the more you spend the more reward points you collect. With this in mind you must be disciplined. These cards are best for people who pay off their balance in full each month but there are many reward credit cards on the markets and deals available to suit more people and their needs. Be careful not to be drawn in just because of the rewards. Make sure that besides the reward programme, are you really getting a good deal? As with any credit card compare the interest rate and all other features of the card before you apply.
Credit cards are very popular as they have many advantages against debit cards. However, not everyone can satisfy the criteria to apply for a credit card. Luckily there is a great alternative to the traditional cards for those with a bad credit history.
The Prepaid Credit Card is available for nearly everybody even if you have a bad credit history or CCJs. There are special cards for under age people. The way these cards work is pretty easy. You just have to top-up a certain amount of money, which you can use up. Most if not all of the best prepaid cards are accepted everywhere where you could use a normal Credit Card. This means you can book hotels or flights online, or do your online shopping with this card. Furthermore you will get access to an online account so that you can do all the transfers online and check your credit balance wherever you are.
The main difference to normal credit cards is the lack of a credit limit. This means that you can only use the money which you have put on it. This is very handy for people how are likely to have problems with managing their money. With this card you will never lose the overview of your current financial situation.
However, don’t forget that some providers may charge you a high fee for charging your card or withdrawing money at an ATM. For this reason you have to take your time to find a cheap and suitable card for you.
This article is designed to help customers understand the different types of cards available on the UK market and to help you understand the important fundamentals when considering any card.
Cards are a more convenient and safer alternative to carrying around large amounts of cash and the chip and pin device that many have offers extra security. Almost everyone in the UK will have a card of some type usually either a credit or debit card and they are probably one of the most popular financial products in the world. Cards are often referred to as ‘plastic money’ and they have worldwide acceptance. You can use them to make purchases in shops, online, over the phone, in restaurants and to withdraw money from cash machines. It is hard to imagine a world without them.
There are lots of different types of cards to choose from. You should start by thinking about how you are likely to use the card and work out which one is best for your needs. Some questions you should consider include: Are you a student? Do you need a card for your business? Are you a responsible card user? Do you have a poor credit history? Do you want to earn rewards as you spend? With most cards you will find there are age restrictions and you will find that you have to provide some identification to acquire the card. Your credit history will also be an important factor when considering the right card for you. Particularly with credit cards, your credit score will affect how much credit you are given. Unfortunately the lower your credit rating the higher the interest rates you will be given and vice versa.
Comparing cards is vital – As there are so many types of cards and providers all vying for your business you should take the time to find the right card for you. You should compare the main features of different cards and find the one that best suits your needs, looking into any additional offers and benefits.
With a credit card you can make purchases without having to have the money to pay for it straight away. A credit card gives you the option to borrow money from the card issuer. When you have a credit card you are given access to a line of credit. Credit is a valuable and for some a necessary financial tool. Credit card issuers record each purchase you make and send you a monthly bill with every transaction listed. You then have to pay back the credit you spent plus the interest which is expressed as a yearly rate or Annual Percentage Rate (APR). Used correctly sometimes credit cards can work out cheaper than a loan.
Use it properly and a credit card can help you establish a credit history, purchase items easily and even take advantage of the benefits and services offered by credit issuers. Credit cards only help you build your credit history, so long as you use the card properly. Having a credit history is essential if you want to apply for loans in the future because lenders look at your credit rating to determine your creditworthiness. Low credit scores and poor credit reports can cause lenders to charge you higher interest rates and make it more difficult for you in the future to apply for loans and lines of credit.
A valuable advantage of a credit card is that you get increased protection as opposed to debit cards. Not only are your purchases better protected you are also better protected against fraudulent activity. When you apply for a credit card there is no guarantee that you will be approved for a high credit line. The company can, and often will, give you a lower credit limit than that advertised and you may also not qualify for some offers that you find. The credit card agreement is essentially a contract between you and the card issuer. This includes the credit line and limit which is the total amount you may use.
- Manage your credit properly. If you fail to manage your credit properly you will have to deal with increased interest rates. You shouldn’t buy things that you can’t pay back because you risk ending up in debt and damaging your credit score. When you don’t pay the money you borrow you risk being denied future credit.
- Always pay your bills on time. You should at least pay the minimum amount due every month and where possible pay charges in full. The minimum monthly payment is the lowest amount that you are required to pay the card provider each month. You will be in default if you pay less than this. Please be aware that you will be charged if your payment is late.
- Introductory rate. Be careful with introductory rates. Although you may be offered an introductory rate that is very competitive, this can be a temporary rate that will end. Make sure you know what the rate will be after the introductory period is over because it could dramatically increase.
- Annual/Monthly fees. You may find that some cards especially reward cards, charge annual or monthly fees.
- Exceeding your credit limit. You will be charged for going over your credit limit. If you do need an increase you should contact your card issuer to see if they will allow you to exceed your limit. They will not necessarily agree to this.
- Cash Advances. When withdrawing money from a cash machine with a credit card this is called a cash advance. Be prepared that you may be charged for this.
- Additional Charges. You could be charged for requesting copies of statements and other administrations requests. There may also be application processing fees.
- Read the agreement carefully. Once you sign the agreement between you and the card issuer, this becomes a legal contract. Therefore, always read the terms and conditions thoroughly and don’t be afraid to ask any questions.
- Do not borrow your way out of debt with a new card. If you are having financial difficulties do not take out a credit card. You risk increasing your debts and not reducing them.
Those with a poor credit history may struggle to obtain a standard credit card. However, there are credit cards out there solely designed for people with a bad, little or no credit. You are likely to get accepted for one of these cards whatever your financial past and these cards work exactly the same as a credit card. You can also use these cards to help rebuild your credit score thanks to credit rebuilding facilities, an aspect you should consider when comparing products.
The main disadvantage of bad credit credit cards is that because you are deemed more of a risk by the card providers due to your credit history you will find the interest rates are higher, sometimes considerably higher, compared with traditional credit cards. You will also find that you are given a lower credit limit because of this reason. Having said this, if you use the card correctly, making your payments on time every month, you will increase your credit score which will improve your future chances of borrowing and is likely to result in you being granted a lower interest card with a higher credit limit.
These cards are great for heightened user control and are a great alternative for those who do not want to take on the risks of credit cards, such as people with a bad credit score or those who are too young for traditional credit cards. Prepaid credit cards as they are sometimes called, can be used in the same way as a credit card except you are not being given any credit. You load the cards with funds and when this runs out you simply reload it to use it again. Because you are only spending your own money there are no interest charges. However, you may find there can be initial fees to buy and load the card, but this is not always the case.
Because you are not borrowing any money there are no credit checks involved so almost anyone can get one. They are ideal for those of you looking to avoid getting into debt and for staying in control of your finances because you are in complete command over your funds. Furthermore, if your card gets lost or stolen, your remaining balance will be transferred across to a new account and you will receive a replacement card.
Business credit cards are ideal if you want a way to separate your business and personal expenses. Whatever the size of your business, whether you are just starting out or are already an established firm a business credit card can add value to your company by helping you to effectively managing your corporate finances. Some cards also come with some really beneficial extras such as offers on travel expenses, discounts on travel insurance and even cash back reward programmes. If several employees require cards you can also get multiple credit cards attached to one account.
If you are a student there are credit cards especially designed for you. These cards come with specially features to help you while you are studying at university including no annual fees and interest free periods. You will find with these cards, because as a student you are unlikely to have any credit history or the security of a regular income, you are considered to be more of a risk. With this in mind you will find that you are given a significantly lower credit limit compared to other cards and interest rates may be higher. However, these cards can be used to start building a credit history and using the card well mean in the future you are more likely to be given a card with better interest rates and a higher credit limit.
You can earn rewards on your purchases with a reward credit card. Just by spending you can earn points that you can exchange for vouchers and discounts. If you plan to use your card a lot then credit cards with cash back programmes where you earn cash on your purchases could be the right type of card for you. For travellers, there are also some great cards that can offer a wide range of travel-related benefits including air miles, free hotel stays and more. The right card for you will depend on what sort of rewards you want to earn.
These cards are best suited to those of you who pay their credit card bill in full each month and for those of you who won’t be enticed to spend more purely to earn the rewards. You may find that there are annual or monthly fees attached with this type of card. When you are comparing the overall value of the card make sure that the card’s benefits and reward programmes are worth any annual or monthly fee.