how to choose a card
The type of credit card you can obtain will
depend to a large extent on your credit history. Since the credit
crunch started in August 2007, credit card companies have become a
lot more choosy as to whom they dish out their cards.
If you have a squeaky clean credit history,
you may be eligible for a teaser 'zero per cent' credit card
offer and even switch from one such deal to another at the end
of each interest free period.
Otherwise, you will have to apply for a
standard credit card deal. If you know that you will not be
able to pay off the outstanding balance each month, the most
important feature to look out for is the annual percentage rate
(APR) for purchases and balances transfers over the long term
(often referred to as the ‘lifetime’ rate).
If, on the other hand, you are unable to
obtain a zero per cent card, but you always pay your monthly
bills in full and on time, the APR is irrelevant as you
will never incur interest charges. In this case, the rewards and
benefits provided are more important.
Some cards offer cash backs of 0.5-1 per cent
of your annual spend, but there are often strings attached and in
recent years card issuers have been reducing or withdrawing this
benefit altogether.
For instance, the Alliance & Leicester
Moneyback Visa card gives money back on purchases at a rate of 0.50
per cent up to £20,000, but only if you have an Alliance &
Leicester premier current account or a mortgage with the bank.
Visit our best buy tables and use our Compare
tools to find the best deal for your needs.