Choose your credit cards wisely
There are many credit cards to choose from in the UK credit card market. Instead of limiting your self to one credit card apply for a few to meet your different borrowing needs.
If you are in the fortunate position of clearing your outstanding credit card balance each month, opt for a cash back credit card. On these types of credit card deals you will receive a % (e.g. 0.5%) of the amount you spend each time you make a purchase. Other credit card issuers will offer rewards such as Airmiles.
If you know you are not going to be able to clear your outstanding balances each month choose a credit card deal with a 0% APR. This will afford you time, anything between three to fifteen months, in which to pay off the outstanding sum without incurring any interest on your repayments. Always check the Terms and Conditions as failure to make a monthly payment may render the 0% APR deal void.
If you already have a credit card but want to transfer an outstanding balance on to another credit card offering a 0% APR balance transfer credit card deal remember there will be a balance transfer fee to pay ranging between 2% to 3% of the amount transferred.
Again if you know that you are not going to be able to clear your outstanding balances each month and you don’t want to keep sourcing 0% APR deals or your credit rating means that you won’t be able to obtain such deals why not apply for a low long term rate. The standard rate on a credit card often reach 18% APR so a low long term rate in the region of 6.8% makes sense. However, these rates are not fixed and the credit card issuer is free to change the rate at any time.
So if your credit card issuer has increased the rate on your low long term credit card why not search for a credit card that offers a lifetime balance transfer credit card deal with a low fixed rate. These credit card deals come with a low APR such as 4.9% until the amount transferred has been cleared.
So, to sum up, keep a look out for credit cards deals and choose your credit cards wisely so that you don’t end up paying anymore interest than you have to.
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