| Guide to Credit Cards |
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| Written by Finance & Insurance | |
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You do, however, need to keep a watchful eye on your cards. Making The Right Choice Pick a card, but not any card! Everyone likes to have a choice, but there is so much bright and glossy plastic out there it can sometimes make your head spin. Firstly, you should know the difference between the various types of cards.
Lets you borrow money and pay it back in monthly payments. It is largely down to you how much you pay back each time, but there is usually a minimum payment of £5 or minimum percentage of your balance, say 2 or 3%.
Is usually linked to your current account. Rather than taking cash out, a debit card means you can make quick and easy transactions, which show up on your account almost straight away.
Means you charge purchases to an account. Offers a monthly statement that needs to be paid off in full. Most issuers charge a membership fee.
You will probably have been offered one of these while out shopping. They are a credit card offered by a retailer, so they restrict where you can spend. Relatively easy to get, but they charge high rates of interest on balances.
Will pay YOU for spending on them. But if you do not pay off full balance every month, the interest goes sky high.
Money goes to charity when you open an account, as does a small percentage each time you spend. |
We all know we should scrimp and save for that new sofa, that much-needed family holiday or that special birthday present for a loved one - but nowadays, few of us really want to wait. Let’s face it - we live in a buy-now-pay-later society. Credit Cards offer an easy way of borrowing for our everyday needs. What’s more, your newfound flexible friends will even shoulder existing debt for you!