Choosing a UK credit card company & keeping your eye on the ball
Paul Hamilton
If you're in the process of choosing a UK credit card company to apply to, then you've probably been staggered at the amount and types of offers which are available. Making a choice can be a difficult task and it can be easy to become ?product-blind?, being unable to distinguish between one offer and the next. Thanks to the vast range of offers, deals and perks, there has never been a better time to take advantage of a credit card. But what types of card are available and which one is the best for you?
However with hundreds of them out there and even more deals and reward schemes to distinguish between, how on earth do you go about choosing the UK credit card company you want to take your custom to? Everywhere you look there seems to be a credit card offering 0% balance transfers, 0% on purchases, discounts and other incentives. Choosing between them is often a difficult balancing act of spending habits, interest rates and financial objectives, but generally, the first thing to consider is how you are going to use it. It may sound obvious but working out what type of consumer you are is a critical step in getting the right deal.
Cash-back cards allow you to reclaim a percentage of your expenditure. If you use your card regularly and pay off your balance every month, then you might want to consider the ?earn as you spend? advantages behind this type of card, as these small percentages can add up - especially if you are a regular user - and are then given to you either as a cheque or are paid directly into your account. Some cards give you a generous 5% cash-back for an introductory period, dropping to a standard 1% after that time.
If you are a regular credit card spender, but have never paid any interest on your balance, then you too could be missing out on lots of perks if you haven't considered using a reward or cash-back card. If it's not personal rewards that interest you, there are also a variety of charity-based ?affinity? cards on the market that make a contribution to charity every time you use your credit card. The Breathe card offers discount with a range of retailers and also gives some of its profits to Climate Change Projects.
For those consumers who like to ?play the game?, there are many purchase cards available with extremely desirable introductory offers. If you don't mind keeping an eye on the market and changing your credit cards every six months or so, then you can really clean up by taking advantage of these offers - but this is a system only to be used by those who manage their finances attentively and efficiently. In addition, it's worth bearing in mind that lenders have got wise to those who change their credit cards frequently and often impose a transfer fee; they may even refuse your credit card application if you have taken advantage of credit card introductory offers in the past. Unfortunately, being refused credit can have a negative impact on your credit rating, causing potential damage to future applications.
Choosing a UK credit card company to take your custom to needn't be fraught with problems - especially thanks to the proliferation of online comparison sites. Once you've had a look at your spending habits and your spending needs, it's simply a matter of scouring these user-friendly sites for the deals that will give you the most benefit. Then you simply need to make sure you meet your balance payments on time, otherwise you'll defeat the purpose of all the rewards, perks and incentives that you could be signing up for.
Ed Milner continues to analyse the differences between
http://www.mbna.co.uk) UK credit card companies and aspects to consider when choosing your next card. As a Personal Finance writer he has a detailed understanding of which credit card is best for you.
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