Credit cards can be an asset to your finances and offer a cheap, convenient way of making purchases, especialy if you need 6 weeks or so before you can pay off your card in full.
You could for instance, pick up a sale bargain safe in the knowledge that you have a few weeks to come up with the cash. This way you will avoid accruing interest charges. The cards from the the Mastercard and VISA International networks are available from banks and other financial institutions, Egg is available online. Most people who are successful when applying for a card will need to be in full time employment and have a regular income. The Gold Card is a more expensive version of credit cars with added options that include travel insurance and free currency exchange. As with Platinum cards, you would be expected to have a higher annual income and pay higher charges. American Express and Diners Club, are charge cards and you would be expected to pay off the outstanding bill each month. Another plus point to having a credit card is that you can use your card to withdraw cash from a cash point using your pin number,however, you will pay interest on your card as soon as you have withdrawn the cash.
How much do cards cost?
There are two types of charges involved, an annual charge and a monthly interest charge on an outstanding balance. The charge cards operate an annual fee only and this can be from around £40 to £90. Although, not every card imposes an annual fee, If you are a frequent user they may waive the charge. Interest rates vary on cards normally quoted per month, an APR will enable you to compare the cost of borrowing on different cards.
if you make a partial payment you will still be charged interest on the whole balance outstanding. Some cards have tiered interest rates geared to the amount you spend the more you spend the lower the rate. Interest is not charged if you pay the whole amount back on the entire balance, |
