Help Finding a Credit Card That Suits You
There are 4 main types of credit card on the market at the moment that are popular amongst many individuals across the UK, and this article will provide you with a brief, straight forward insight to the benefits, disadvantages and drawbacks to each card so you can decide for yourself what best meets your requirements.
0% Balance Transfer
This type of card is beneficial if you have other credit cards that hold a high interest rate on repayments each month. Credit card providers will usually charge a percentage on the balance you want to transfer (no more than 4%), which in return will assist you in extensively reducing the amount you owe. It is always advisable not to make purchases with this type of card as the interest rate can shoot up if you use it to for any transactions.
Low Interest
Low Interest credit cards are mainly aimed at individuals with an excellent credit rating, but those with a blemished credit history can still be successful in their applications. This type of card is ideal for steering clear of heavy debt on high interest balances, making financial control a lot easier for you.
Rewards
These reward credit cards usually hold a high interest rate similar to the cash back credit cards. If you are looking at taking out one of these then please be advised that if you can’t pay back the full balance each month then you could run into problems down the line and the term “rewards credit card” won’t end up rewarding you with much. If you can cope with paying off the balance then the reward structure set out by many card providers is to give you a percentage of the interest rate earned for that entire year.
0% Purchase
This type of card is very popular with many people as it allows you to purchase goods on the card without having any interest added to it for the introductory period, a personal loan if you will. Always be sure to check out when this introductory rate ends to prevent paying high levels of interest on your remaining balance, and of course the Annual Percentage Rate (APR) that will be put into place.
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