But if they are offering great deals, and the Government aren’t going to stop them, then why not take advantage? There are a number of very good reasons to own a credit card… the problem is not whether to get one, it’s which card you should get! How can one possibly choose the right ‘bit of plastic’ for them from such a wide selection?

Look Deeper

No, not deeper into your soul, deeper into the offers. All credit cards like to shout about the attractive new all singing, all dancing offer from the roof tops. But they are usually shouting about is the superficial parts, those bits that matter less but seem attractive.

They want to tell you about the APR for the first 6 months, not the next 5 years. Or the Amazon vouchers that come with them, or the cash back scheme in place. The offers keep going, but one thing they forget to tell you – what matters. It is hidden there in the fine print.

So what do you need to look for?

You want, when you boil it right down, a credit card that will give you an ongoing APR that is as low as possible, from a renowned company that has an upfront fee set up and a customer service that you can both access and believe in.

>> Compare credit card lenders

Amazon vouchers are nice, but they should just make any deal that you do make that much better – they should never be something that you base as important a decision as what credit card to choose around.

What to Look For When Choosing a Credit Card is a post from: Best Credit Cards

1. Prioritise your spending and pay your bills first and then look to buying any extras with the cash you have left. Lots of people find themselves struggling with their finances because they spend their money twice – once in cash from the bank and again on the credit card.
2. Look at your regular monthly payments and see if you can downsize any bills by visiting web comparison sites and reviewing your utilities, car and home insurance and credit card rates.
3. While you’re doing this, see what bills you can chop like that gym subscription you never use.
4. Stick all the stuff you don’t want on eBay. Don’t even worry if it’s a broken computer or something – as long as you mark it as not working someone might buy to cannibalise for spares.
5. Fire up that hob and cooker and buy in some fresh ingredients to serve up some home made gourmet delights instead of paying for ready meals or takeaways. A fresh food diet is much better for you anyway.
6. Stop buying food at work and take a packed lunch.
7. Look at your lifestyle. Do you really need the latest phone with all those prepaid texts and minutes or the full monty of packages on satellite or cable TV?
8. Consider buying supermarket brands for home essentials like soap, washing powders and basic cooking ingredients. Shop around – you may find your weekly shop comes in at significantly less by visiting two supermarkets instead of one.
9. Save fuel if you have children and live within walking distance of the school. Keep the car on the drive and gently a breath of fresh air and some exercise having a stroll with the kids.
10. If you have a spare bedroom that just collects dust, why not take in a lodger? The taxman will let you charge £82 a week without charging any tax under the Rent a room scheme. If you are a pensioner or claiming benefits, the scheme should not affect your income.
11. Don’t play Scrooge all the time, put some cash aside for the occasional treat, even if it’s something simple like renting a DVD or buying some chocolates. Times might be tough but you need something to look forward to as well.

Summary

• Prioritise your spending and make sure you protect your credit rating by paying your bills first
• Have a look around the house and garage – sell everything you don’t want on line or at a boot sale.
• Cut your spending and buy cheaper brands
• Don’t take things too far – save a few pounds for a treat

Making your money go further is a post from: Best Credit Cards

It almost goes without saying these days that the UK is a land of consumer spenders. Consumer spending has rocketed. And, most of this consumer spending has been financed by short-term credit card debt. In short, applying for, and obtaining, a credit card has become almost too easy and as consequence we have gone from a nation famous for saving to a nation famous for overspending. Whilst not wanting to sound too blunt, these days you need to be aware of what you’re letting yourself in for when you apply for a credit card.

CREDIT CARD LIMITS

When you apply for a credit card you’ll need to declare what your monthly or annual earnings are. From this figure, which will likely need to be evidenced by a wage slip, the lender will determine how much of a credit limit you’re worth – usually this figure is around three times your monthly salary. However, in addition to detailing your current earnings, you are also required to detail what your current expenditure is, which includes any sums you already have outstanding on credit cards. Failure to do such could subject you to a charge of fraudulently completing your application form. Conveniently, however, most lenders don’t push this issue until such time as you are having problems repaying your debt.

INTEREST RATES ON CREDIT CARDS
Interest rates on credit cards can vary widely. Nonetheless, short-term borrowing by means of a credit card is expensive. Interest rates can be as high as three times the Base Rate set by the Bank of England. Furthermore, borrowing cash on your credit card is probably the most expensive form of legal borrowing that you can do.

REPAYING YOUR CREDIT CARD DEBT
Repaying your credit card debt could not be simpler. In short, you have the option of repaying the money that you have advanced on the next repayment date. Alternatively, you can make repayment of the minimum repayment amount on the next repayment date.

DEFAULTING ON CREDIT CARDS
If you find yourself in a situation where you are not going to be able to met your next minimum monthly repayment, you should take the following steps immediately, so as to avoid any potential repercussions:

• notify the card owner of your current problems. Ordinarily a card owner will try to assist any cardholder through any short-term shortfall in cash. After all, they are trying to recoup all of their money, not just some of it in the bankruptcy courts.
• consider the other borrowing options available to you. If you have a significant amount of credit card debt, it may well be the case that you can consolidate these into a new debt with much less of an onerous burden on you; for example, by taking out a personal loan to repay your credit card debt. Alternative credit cards, with lower interest rates may also be an option.
• lock-away your cards! Make sure that any repayment you make remains a repayment and that you do not fund your next month’s living expenses through the use of the credit facility that has just become available again.

Whatever you do, make sure that you keep the credit card company aware of when you are next going to be able to make a repayment. Also, make these realistic; don’t just tell them things you think they’re going to want to hear to leave you alone.

CREDIT CARD INSURANCE
As with all things in life, it is possible to obtain (in fact it is likely you’ll be urged to) a credit card insurance policy. Essentially a credit card insurance policy insures against the theft and use of your credit card. However, it can also insure against any loss of income that you may suffer as a result of losing your job or income revenue stream. As such, careful consideration needs to be given to weigh up whether or not you think insuring against any of theses events may be of benefit to you.

CREDIT CARD OR NOT
Finally, we return to the issue of whether or not a credit card is the best way to fund consumer spending. In all fairness to credit card companies, if you are a debtor who repays the entire outstanding balance on the next repayment date, then a credit card is a very useful tool to have. However, it is also the case that by doing this you are not going to be considered the ideal credit card customer. What the credit card company wants is someone who is always reliable to make payment of the minimum monthly repayment and never to default on that. That way they’ll maximize their profits. If you happen to be such a borrower, then there are several other ways which you may find much cheaper to fund the purchase of your consumer item than via a credit card; for example, a personal loan.

Whatever you decide to do, remember that one in four people in the UK these days has a bad credit record – yet we still manage to spend ever more amounts on our credit cards. If nothing else, this should tell you to be extremely careful about budgeting when using a credit card.

Is that credit card really suitable for your needs? is a post from: Best Credit Cards