There’s nothing quite as convenient as being able to shop and pay for purchases with a credit card, and luckily for UK residents there are a number of credit card deals to select from these days. Using credit cards means that you don’t have to carry around cumbersome cash and cheque books, and you don’t have to worry if you need to make an urgent purchase but are temporarily strapped for cash.
Over recent years, the types of credit cards available to UK residents have increased dramatically. In years gone by, a credit card was a credit card, and the only variation was the credit limit. However, you can now select from a number of deals to suit your needs and your budget. Some of the UK credit cards around today are:
0% balance transfer credit cards
These cards offer a great opportunity to people that have current credit card balances on which they are paying high amounts of interest. With a 0% balance transfer credit card, you can transfer the balance from your other credit cards or loans (subject to the credit limit on your 0% balance transfer credit card). You will then enjoy an interest-free period on all money that you have transferred, giving you the opportunity to make a real impact on your repayments without worrying about your money being swallowed up in interest. Many of these cards also offer 0% interest on new purchases as well. So, if you are able to repay your credit card balance within the interest-free time period, then this card makes sense. You should make sure that you check the interest-free periods when comparing 0% balance transfer UK card issuers, as some lenders will offer a longer interest-free period than others.
Interest free credit cards
Many UK card issuers offer straightforward interest-free cards, which enable you to make new purchases and repay the balance over a given time period, with no interest charged over that period. Once that interest free period has expired, interest will be charged for the remaining balance on the card, so you should aim to pay off the balance whilst the interest free period is still in force. The interest rates charged after the interest free period will vary from UK lender to lender, and you should compare these rates so that you have an idea of what you will be paying on any remaining balance after the interest free period expires.
Cash back credit cards
Many UK consumers like to use cash back credit cards, and these offer a certain percentage of cash back on every purchase made with the card. The cash back amount is not huge, but some UK lenders offer a larger cash back percentage during the first few months and this then reverts to the standard cash back. These cards are great for those that tend to pay off their balance at the end of each month before any interest accrues. This is because the interest free period cards would hold no benefit for these borrowers since they do not incur interest anyway. A cash back card will, however, offer a useful reward for shopping with you credit card.
Bad credit history credit cards
Some UK card issuers are able to provide credit card facilities that are specially designed for those with a poor credit history or a bad credit rating. These cards can help to repair your tarnished credit rating, providing the monthly minimum payments are made on time. Although the credit limits on these cards tend to be low at first, this means that there is less chance of getting carried away and spending loads of money that you can’t possibly repay.
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